Japan Stocks Nudge Higher After Down Week

TOKYO (AP) — Japanese stocks rose modestly Monday after trading in a narrow band throughout the day as investors remained cautious about whether the economy is headed toward a recovery.

The benchmark Nikkei 225 index edged up 40.01 points, or 0.4 percent, to 9,826.27. The broader Topix index gained 3.51 points, or 0.3 percent, to 922.48.

Monday's advance came after the Nikkei dropped 3.4 percent last week, ending a strong run since March that led to fresh yearly highs earlier this month.

There have been reports that financial firms are gradually recovering and the global economic downturn may be nearing an end. But Japanese investors are likely watching for signs that consumers will begin spending again, especially in the U.S., where government personal spending data for May is due out on Friday.

In trade Monday, some electronic manufacturers showed strong gains. Fuji Electric Holdings rose 12 percent to 168 yen, while NEC Corp. rose 3.2 percent to 391 yen and Nikon Corp. was up 2.5 percent to 1,588 yen.

Nissan Motor Corp. gained 5.6 percent to close at 599 yen, although Toyota Motor Corp. slipped 0.3 percent to 3,680 yen.

In currencies, the dollar was trading at 96.11 yen in Tokyo on Monday afternoon from 96.26 yen in New York late Friday. The euro stood at $1.3860 from $1.3936.