Japanese stocks rallied after a strong U.S. jobs report reinforced confidence in the world’s largest economy and sent the dollar higher against the yen.

The Topix index climbed 0.9 percent to 1,588.83 as of 9:03 a.m. in Tokyo, after sliding 1.3 percent last week. Exporters from Honda Motor Co. to Fanuc Corp. advanced, while energy explorers slipped after OPEC opted not to impose a limit on output. The yen traded at 123.19 per dollar after weakening 0.4 percent on Friday as U.S. non-farm payrolls increased more than economists had expected in November. The Standard & Poor’s 500 Index jumped the most in almost three months.

The 211,000-worker increase in November payrolls compared with economist projections of 200,000, and followed a 298,000 gain a month earlier that was bigger than previously estimated. Traders are pricing in 74 percent odds for a Federal Reserve rate increase next week, while only five of the 73 economists surveyed by Bloomberg see rates left on hold at the Dec. 15-16 meeting.

Japan’s government intends to compile a 3.3 trillion yen ($26.8 billion) extra budget to help low income earners and improve agriculture competitiveness, the Nikkei newspaper reported Dec. 5 without citing a source. The budget will be approved by the nation’s cabinet in the middle of this month, the newspaper said.

Policy makers are considering a property-tax exemption for small- and medium-sized businesses that increase capital expenditure, Economy Minister Akira Amari said in an NHK broadcast on Sunday.

Source: Bloomberg