Japan's Nikkei rises as investors scoop up beaten-down stocks

The broader Topix was up 0.95% at 2,728.32.

The Nikkei hit an all-time high of 41,087.75 on March 22, although the index has struggled to keep above 40,000 points, posting two consecutive weekly losses.

Last week, the benchmark index saw its worst weekly performance since December 2022 as U.S. stocks slipped and profit-taking kicked in. The risk of currency intervention by Japanese authorities also weighed on the market.

Still, the Nikkei has gained 16.5% year-to-date, while analysts appeared to dismiss recent declines as signs of a larger reversal.

"It really is still a constructive bull pattern," said Tony Sycamore, a market analyst at IG.

"That we've had a bit of a pullback I think reflects the fact that we're just starting to see the market in this holding pattern around dollar/yen."

The dollar last traded around 151.79 yen.

Local investors tracked Wall Street's upbeat performances on Friday following U.S. job growth figures that exceeded forecasts.

Concerns over the Middle East crisis also eased, with no further deterioration in the situation in Gaza over the weekend.

Gains were widespread on Monday, with 188 of the Nikkei's 225 constituents advancing versus 35 declining, although the rally lost some momentum in the afternoon session.

Uniqlo parent firm Fast Retailing climbed 1.6% to add 68 index points to the Nikkei's near 355-point gain.

Many index heavyweights advanced, with chip-making equipment giant rising 1.1% and AI-focused startup investor eking out a 0.7% increase.

was up 2.2%, along with fellow automakers Suzuki Motor and Honda Motor, gaining 3.5% and 1.5%.

The largest percentage gainers were chip-related firm , up 7.19%, followed by gaining 3.93%.