Japan's Nikkei edges up as financials, export shares rise

The upside surprise in U.S. job growth prompted worries that the may wait longer to cut than many investors had hoped.

This had the yen brushing the 157 range against the U.S. dollar again, buoying export-related stocks such as , up 1.7%, which benefit from a weaker currency.

Meanwhile, the insurance and banking sectors rallied as Japanese government bond yields tracked U.S. Treasury yields higher, which rose after the jobs data.

Of the Nikkei's 225 constituents, 170 advanced, rising modestly to push the index near 39,000 points ahead of monetary policy decisions this week by the Fed and .

The Nikkei has struggled to maintain the key level as look for clarity on the . Foreign investors, whose renewed interest helped drive the index to record highs in late March, have pulled back in recent weeks.

"If you're a foreign investor, you've done very well in the past 18 months. Why carry the risk over the summer?" said Neil Newman, head of strategy at Astris Advisory.

Newman expects Japan's equities to rally again late in the year after overseas investors have a chance to review risks, including global election outcomes, and assess a broader set of Japanese companies to invest in.

Among individual stocks, insurance firm climbed 4.6% to become the top percentage gainer, while rose 3.4%.

jumped 3.8% after said on Friday that it plans to construct a large-scale AI data center utilising the telecommunications and electrical equipment manufacturer's plant. SoftBank Group was up 1.6%.

In contrast, Cosmetics maker Kao Corp slipped 4.2%.