TOKYO, Dec 10 (Reuters) - Japan's Nikkei share average
advanced on Tuesday as a softer yen lifted exporter shares,
while stocks with a connection to China soared on Beijing's new
promises of an "appropriately loose" monetary policy next year.
The Nikkei rose 0.09% to 39,197.42 by the midday
break, while the broader Topix gained 0.14% to 2,738.26.
Automakers were among exporter shares that climbed as the
yen softened against the U.S. dollar.
The dollar was trading around 151.14 yen during
the session.
Toyota Motor ( TM ) advanced 0.9%, Suzuki Motor ( SZKMF )
soared 3.5% and Honda Motor ( HMC ) added 1.8%.
Fanuc ( FANUF ) and Yaskawa Electric ( YASKF ), up 3.6% and
2.6% respectively, and other shares with strong ties to China
rallied, after Beijing's surprise announcement on Monday that it
plans to implement a looser monetary policy and more proactive
fiscal policy.
Shiseido ( SSDOF ) jumped 4.9% to become the top percentage
performer on the Nikkei.
A portion of Japan's chip-related shares tracked AI leader
Nvidia NVDA.O and other U.S. technology shares lower after
China's market regulator launched a probe into Nvidia over
suspected violation of the country's antimonopoly law.
Chip-testing equipment maker Advantest ( ADTTF ), which
counts Nvidia among its customers, traded flat after dipping in
early trade.
However, the early gains on the Nikkei narrowed as investors
awaited the Federal Open Market Committee (FOMC) and Bank of
Japan (BOJ) meeting next week for the policy decision.
"A cut from the Federal Reserve is baked-in, but there's
uncertainty about what the BOJ does. So if the latter hikes, a
stronger yen will hurt Japanese stocks," said Kyle Rodda, senior
financial market analyst at Capital.com.
However, somewhat more hawkish guidance from the Fed
regarding next year's policy outlook could counterbalance the
impact on the dollar-yen pair, Rodda added.
The U.S. inflation report and the BOJ's "tankan" survey are
due this week.
Among other major stocks, chip equipment maker Tokyo
Electron ( TOELF ) gained 2.2%, entertainment conglomerate Sony
Group ( SONY ) added 4%, while Uniqlo-owner Fast Retailing ( FRCOF )
slid 1.1%.