TOKYO, Sept 30 (Reuters) - Japan's benchmark Nikkei

share average opened down 1.79% at 39,117.83 on Monday,

following a sharp strengthening of the yen at the end of last

week with perceived-monetary-policy hawk Shigeru Ishiba set to

become prime minister.

The broader Topix shed 1.60% at 2,696.98.

The yen surged about 1.9% on Friday and then reached the

highest since Sept. 20 at 142.04 per dollar in early

trading on Monday. It had retreated about 0.36% to 142.73 per

dollar as of 0008 GMT.