Japanese shares surge on weaker yen

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The Nikkei index of the Tokyo Stock Exchange rose 165.35 points to 10,751.37. The Topix index of all first section shares increased 1.19 per cent, or 11.33 points, to 960.02.

US stocks soared Thursday on data showing steady improvement in the jobs market, retail sales and the economy's service sector, and as oil prices eased slightly. The Dow Jones Industrial Average closed 1.59 per cent higher.

Expectations were for a strong US jobs report later in the global day.

Bellwether exporters drove the Nikkei's gains. "All the positives are lined up with oil prices down, US stocks going up, and the yen weakening," Masayoshi Yano, senior market analyst at Meiwa Securities, told Dow Jones Newswires.

However, Masatoshi Sato, senior strategist at Mizuho Investors Securities noted: "There are still questions on how far the market has priced in lingering risk factors" such as conditions in the Middle East and fundamental European fiscal issues.

The dollar was quoted at 82.34 yen in Asia trade, slightly down from 82.41 late Thursday in New York but relatively stronger against the Japanese unit than in recent days.

Sumitomo Electric Industries was up 8.24 per cent at 1,261 yen on a Nikkei report that the company had developed a new rechargeable molten-salt battery.

Konica Minolta rose 3.79 per cent to 765 on a Nikkei report it had inked a major office equipment supply deal with Germany's Allianz.

However, Mitsubishi Heavy Industries was off 1.07 per cent at 368 midday, underperforming the Nikkei's rise, after profit-taking following Thursday's 5.4 per cent rally.

Mitsubishi Heavy's alternative role as a major weapons manufacturer has seen it benefit from tensions in the Middle East and North Africa, dealers said.

But "if the Libyan peace mediation process is successful and manages to stabilize the (Middle East/North African) region, shares should also benefit from the recovery of oil refinery facilities," a chief strategist at a Japanese securities firm said, noting the company supplies parts to plants.