Japan Stocks Rally Back From Correction Territory

Techs and auto makers led Japanese stocks to a solid rebound early Monday, based mainly on an easing for the yen and a positive cue from the U.S. markets. The Nikkei Stock Average zoomed 2.6% higher in early trade, erasing Friday's 1.4% drop that sent the benchmark into correction territory, while the broader Topix was quoted up 2.8%. Among the techs, Panasonic Corp. rose 3.1%, Murata Manufacturing Co. gained 3.4%, and Renesas Electronics Corp. added 4%, while NEC Corp. jumped 5.3% as the Nikkei business daily said the company's six-month results would show a roughly 50-fold jump in operating profit, thanks to rising technology investment in both the public and private sectors. Among the auto shares, Toyota Motor Corp. climbed 4.2%, Nissan Motor Co. improved by 3.4%, and Subaru producer Fuji Heavy Industries Ltd. rallied 5.4%. Both the tech and auto sectors got support from a cheaper yen, with the dollar rising to �107.11 after trading in the mid-�106 range during the previous Tokyo stocks session. Among other movers, Mitsubishi Heavy Industries Ltd. saw a 4.2% gain after the Saturday unveiling of its new Mitsubishi Regional Jet, the first Japanese made commercial airplane since the 1960s.