Japan's Nikkei touches one-month high in choppy trade

Nikkei at one-month high: Japan's Nikkei share average rose on Monday to touch the 39,000 level for the first time since late July, helped by a softer yen and Wall Street's gains at the end of last week.

The Nikkei .N225 closed 0.1 per cent higher at 38,700.87. It hit its highest since July 31 at 39,080.64 earlier in the day before trade turned choppy as profit-taking started and the yen's slide stalled.

The broader Topix .TOPX also finished up 0.1 per cent at 2,715.99.

Wall Street stocks gained on Friday after fresh economic data raised expectations that the US Federal Reserve would cut interest rates modestly in September. US markets are closed on Monday for a public holiday.

The dollar gained against the yen following the latest US economic data, lifting the shares of Japanese exporters. FRX/

A softer Japanese currency helps exporters as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.

The transport equipment sector .ITEQP.T edged higher 0.7 per cent, with Toyota Motor 7203.T up 0.8 per cent, while Honda Motor 7203.T climbed 1.4 per cent and Mazda 7261.T gained 0.7 per cent.

Global stock markets fell sharply early last month on fears of an imminent recession in the world' largest economy, but economic data has since buoyed expectations of a soft landing.

Markets remain focused on US labour data though, putting attention this week on the weekly unemployment numbers due on Thursday and August non-farm payrolls due on Friday.

Some market participants are still worried about risks of a possible hard landing, "so unless that is dismissed, it will be difficult for the Nikkei to exceed 39,000 points and keep rising," said Masayuki Kubota, chief strategist at Rakuten Securities.

Investors will also be monitoring the yen's direction as well, he added.

Chip-related Advantest 6857.T rallied 2.3 per cent to give the Nikkei index the biggest lift, followed by electronic components maker TDK 6762.T, which was up 2.7 per cent.

Uniqlo parent Fast Retailing 9983.T was up 0.4 per cent.