Tokyo’s markets gained on Monday.
The Nikkei 225 added 1.17 percent to 16,698.08, while the Topix index had its best day in a month with a gain of 2.07 percent to 1,606.49.
The Mothers market of small and mid-caps was up 3.7 percent to 965.17.
Carmakers were higher after Nissan (TYO: 7201) said that operating profit in its fiscal second quarter was up by 12 percent despite analyst sentiment that profits would be down in the quarter.
Nissan added 14.2 percent to ¥1,283, while Honda Motor (TYO: 7267; NYSE: HMC) and Toyota Motor (NYSE: 7203.T; NYSE: TM; LSE: TYT) each gained 3 percent, to ¥4,160 and ¥6,430 respectively.
In addition, Calsonic Kansei (TYO: 7248), which makes parts for Nissan, added 6.9 percent to ¥620.
Banks were higher after US mortgage lender Countrywide Financial (NYSE: CFC) predicted that it would return to profit in the fourth quarter, raising sentiment that the worst of the subprime crisis could be over.
Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 4.7 percent to ¥1,091 while Mizuho Financial (TYO: 8411; NYSE: MFG) was 5.6 percent higher to ¥639,000 and Sumitomo Mitsui (TYO: 8316) added 9.5 percent to ¥919,000.