Tokyo stocks up, banks and exporters rise

Tokyo, Aug 27: The Nikkei average rose by 1 per cent on Monday, buoyed by Wall Street gains and a weaker yen, with banking shares up as Mitsubishi UFJ Financial Group Inc rose 2.7 per cent after buying a stake in Australia's Challenger Financial Services Group.

Exporters also gained, with Honda Motor Co Ltd up by 2.7 per cent, but rises were capped overall by profit-taking.

Markets kept one eye on a cabinet reshuffle set for Monday afternoon, but the short-term impact of this was expected to be limited.

The Nikkei ended the morning session up 172.92 points at 16,421.89, after briefly rising as high as 16,504.72. The broader TOPIX index also rose by 1 per cent to 1,603.00.

REUTERS>