The weak yen and Wall Street rally help Japan's Nikkei index recover from a one-month low.

TOKYO: As Wall Street rallied on growing bets of a soft landing for the US economy, and the yen pulled back from a four-month peak, Japan's Nikkei share average rose on Monday from a one-month low touched last week.

As of the midday break, the Nikkei was up 1.6% at 32,817.61, leading a broad rally with 201 of the benchmark's 225 components rising and 24 declining.

The entire Topix increased by 1.38%. The Nikkei saw gains following the index's worst weekly performance since mid-September last week, which included a 3.4% decline on Thursday and Friday as the value of exporters' overseas sales was reduced by the strengthening yen.

Maki Sawada, a strategist at Nomura Securities, stated, "The rally is extremely broad, (but) we can clearly see that a big part of it is a natural rebound from last week's steep declines."

"It is most likely the most important factor."

The yen dropped from as high as 141.60 per dollar late last week to 145.47 on Monday. US stocks, especially high tech stocks, had risen on Friday as positive monthly jobs data confirmed expectations that the economy would escape a recession.

Tokyo Electron, a heavyweight chip manufacturing equipment manufacturer, was the Nikkei's biggest benefactor, gaining 76 points with a 3.42% increase.

Maker of chip testing equipment Advantest saw a gain of 2.44%.

Exporters increased, with Nissan and Toyota Motor contributing 3.1% and 0.93%, respectively. Nintendo's stock increased 1.5%, while Sony's increased 1.8%.

Following a spike in crude oil prices, energy shares performed better, with a Tokyo Stock Exchange sub-index of the stocks rising by 2.28%.