TOKYO—Tokyo stocks rose slightly Monday as buying in financial stocks and exporter shares followed from growing optimism about the U.S. economy and the dollar's stability.
But many players remained cautious amid a series of earnings reports this week.
The benchmark Nikkei 225 Stock Average index gained 30.90 points, or 0.22 percent, to 13,894.37 on the Tokyo Stock Exchange, a two-month high.
The Topix index of all Tokyo Stock Exchange first section issues rose 21.84 points, or 1.63 percent, to 1,361.75.
Optimism about the U.S. financial sector's health has improved market sentiment, but some investors grew cautious "before the earnings season gets into full swing," said Shinko Securities' strategist Tsuyoshi Segawa.
Many Japanese companies are releasing their January-March quarterly earnings reports this week.
Financial stocks ended higher after gains in their U.S. counterparts. Mitsubishi UFJ Financial Group climbed 10 percent, Mizuho Financial Group closed up 9.5 percent, and Shinsei Bank jumped 13.5 percent.
The dollar's stability against the yen also buoyed exporter shares. Honda Motor Co. rose 3.0 percent, Nissan Motor added 2.8 percent and Mazda Motor shot up 7.9 percent.
In currencies, the dollar bought 104.58 yen in midafternoon Tokyo, up from 104.26 yen late Friday in New York. The euro dipped to US$1.5656 from US$1.5635.
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