(Updates with prices as of 0230 GMT)

By Brigid Riley

TOKYO, Oct 7 (Reuters) - Japan's Nikkei share average

surged more than 2% on Monday, supported by a weaker yen and

Wall Street's gains on Friday after a stronger-than-expected

jobs report suggested the world's largest economy remained

resilient.

The Nikkei was up 1.9% at 39,354.63 by the midday

break in a widespread rally, after rising by 2.27% earlier in

the session, while the broader Topix rose 1.7% to

2,738.93.

U.S. nonfarm payrolls increased by the most in six months in

September and the unemployment rate fell to 4.1%, data showed on

Friday, boosting global investor sentiment.

The latest jobs report raises the chance of a soft landing,

and possibly earlier than expected, said Naka Matsuzawa, chief

macro strategist at Nomura Securities.

"If that happens, that's definitely a plus for Japanese

stocks, which are quite cyclical and sensitive to the global

economic recovery."

The U.S. dollar rallied following the data, sending the yen

down to its lowest levels since mid-August. This buoyed shares

of automaker Toyota Motor ( TM ), which rose 1.9%, and shares

of other exporters.

Investor sentiment was also boosted after the Dow posted a

record closing high on Friday and the Nasdaq ended with a more

than 1% gain.

The Nikkei was edging toward the 40,000-point range,

although it may be too early to try for the key level as

investors await further confirmation about the U.S. economy's

outlook, said Nomura's Matsuzawa.

The U.S. presidential election is also fast approaching,

taking place in early November.

Financial shares rallied, tracking their U.S. peers, with

Resona Holdings ( RSNHF ) surging 7.6% to be the top percentage

gainer on the Nikkei. Meanwhile, the Japanese 10-year government

bond yield hit a one-month high.

Index heavyweight Fast Retailing ( FRCOF ) gained 1.2%.

Semiconductor and other major technology stocks also

performed solidly, with AI-focused startup investor SoftBank

Group up 2.7% and chip-testing equipment maker

Advantest ( ADTTF ) adding 3.3%.

(Reporting by Brigid Riley; Editing by Subhranshu Sahu and

Varun H K)