Tokyo stocks up by break, Toshiba erases losses

Tokyo - Tokyo stocks rose on Friday morning as automakers and banks chalked up gains, while Toshiba erased early losses that had been driven by fears its loss-hit US nuclear unit is headed for bankruptcy.

The benchmark Nikkei 225 index rallied 256.76 points, to 19 575.34 by the break and the Topix index of all first-section issues rose 17.00 points, to 1 571.68.

Exporters benefited as the dollar hit ¥115.20 in Tokyo, against ¥114.95 in New York.

Eyes are on the release of US jobs data later Friday, which traders hope will provide a clearer idea about the Federal Reserve's future plans for interest rates after an expected hike next week.

"The yen's decline is a main factor behind today's solid gains," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"The market appears convinced that the Fed will raise rates, while investors are expecting encouraging US payroll figures. All in all, Tokyo market sentiment is upbeat."

In share trading Toyota rose 1.045% to ¥6 501, while rival Nissan gained 1.18% to ¥1 155.

Uniqlo operator Fast Retailing, a market heavyweight, rose 2.14% to ¥36 810 and Sony jumped 3.48% to ¥3 655.

On Thursday, Standard & Poor's raised Sony's credit rating, saying a wide-ranging restructuring had "greatly reduced the downside risk to earnings" in its hard-hit electronics business.

Banking giant Mitsubishi UFJ rose 1.41% to ¥767.6 and rival Sumitomo Mitsui Financial Group tacked on 1.18% to ¥4 377.

Toshiba, which dropped more than three percent in early trade, ticked up 0.68% to ¥206.2. It dived 7% on Thursday.

Toshiba has been reeling from huge losses at its US nuclear business, with fears mounting that the hard-hit unit is headed for bankruptcy.