Tokyo stocks at 10-month high on weaker yen

Tokyo stocks rose to a 10-month high on Monday as the dollar soared against the yen on expectations the Federal Reserve will raise interest rates next month.

The dollar broke above 111 yen for the first time in nearly six months as traders bet on a December rate rise and on further increases over the next year, to counter an expected surge in US spending and tax cuts under President Donald Trump.

The weaker yen is a boon for Japan's exporters as it makes their goods cheaper overseas and boosts their repatriated profits.

The benchmark Nikkei 225 index gained 0.77 percent, or 138.61 points, to 18,106.02, closing above the psychologically key 18,000 mark and at its best level since early January.

The broader Topix index of all first-section issues was up 1.01 percent, or 14.47 points, at 1,442.93.

The dollar bought 111.12 yen in Tokyo, up from 110.90 yen in New York on Friday.

The surge in the dollar has also hit global bonds, with yields climbing as investors move out of the safe-haven assets in search of better returns elsewhere.

"The high yield and weaker yen trend hasn't changed, and now those who were late in joining the buying spree will tag along," Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute, told Bloomberg News.

"At the bottom of all this, still, are expectations for US President-elect Trump," he said, referring to the tycoon's pledge to introduce huge stimulus for the economy.

Toyota rose 0.68 percent to 6,359 yen, with Sony up 2.00 percent at 3,300 yen and Hitachi gaining 3.21 percent to 613.5 yen.

Mobile carrier SoftBank gained 1.16 percent to 6,854, but market heavyweight Fast Retailing fell 0.54 percent to 39,970 yen.

The finance ministry announced just before markets opened that Japan posted a second successive trade surplus, of 496.2 billion yen, in October.