Tokyo stocks opened higher Monday on eased US credit fears, the dpa reported.
The Nikkei 225 Stock Average rose 104.63 points, or 0.75 per cent, to 13,968.1. Japan's key index at one point rose above 14,000 level in early trading for the first time in two months.
The broader Topix index of all first-section issues was also up 25.52 points, or 1.9 per cent, at 1,365.43.
The Tokyo Stock Exchange briefly suspended trading in Matsushita Electric Industrial Co and Sanyo Electric Co shares after news reports said the two Japanese electronics makers were considering a capital tie-up.
To aid struggling Sanyo, three creditor institutions, Sumitomo Mitsui Banking Corp, Daiwa Securities SMBC Co and Goldman Sachs Group Inc, were considering selling their stake in Sanyo to Matsushita, according to a Japanese daily Yomiuri Shimbun Monday.
The three institutions were considering a business and capital partnership with Matsushita and management integration, the daily said.
On currency markets at 9 am (0000 GMT), the dollar traded at 104.62-67 yen, down from Friday's 5 pm quote of 104.70-72 yen.
The euro was quoted at 1.5615-20 dollars, up from Friday's 5 pm quote of 1.5581-84 dollars, and at 163.40-45 yen, up from 163.15-19 yen.