TOKYO: Tokyo stocks rose on Monday morning, with Sharp surging more than five percent after the struggling company formally signed a multi-billion dollar deal to be taken over by Taiwan's Foxconn.
The Japanese market was lifted by bargain-buying after shares dived last week, while traders were given a positive lead from Wall Street, where upbeat jobs and manufacturing data sent all three main indexes rallying.
At the lunch break, Tokyo's benchmark Nikkei 225 index advanced 0.21 percent, or 33.63 points, to 16,197.79, rebounding from four straight sessions of losses last week, including a 3.55 percent drop on Friday driven by a weak business confidence survey.
The broader Topix index of all first-section shares gained 0.63 percent, or 8.17 points, to 1,309.57.
Sharp jumped 5.60 percent to 132 yen after the electronics maker over the weekend sealed a deal to be taken over by Taiwan's Hon Hai Precision, better known as Foxconn, for 389 billion yen.
The gains in the Nikkei came despite the yen strengthening against the dollar, which hits the profitability of Japan's exporters.
In Tokyo, the greenback fetched 111.49 yen compared with 111.63 yen in New York and 112.17 yen in Tokyo earlier Friday.
"Japanese stocks will be impacted by a stronger yen," Yoshinori Ogawa, a market strategist at Okasan Securities, told Bloomberg News.
"It wouldn't be surprising if profits shrank this fiscal period."
Automakers were dented with Toyota dropping 2.61 percent to 5,620 yen, while Nissan was off 2.66 percent at 970.6 yen and Honda fell 1.42 percent to 2,900 yen.
But banking giant Mitsubishi UFJ rose 0.21 percent to 16,197.79 yen while rival Sumitomo Mitsui Financial group added 0.60 percent to 3,320 yen.
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