Japan`s Nikkei stock index rose 5.6 percent by early afternoon on Tuesday as a weaker yen eased concerns about the outlook for exports, dealers said.

The benchmark climbed 480.79 points to 9,057.77, rebounding after a drop of 5.0 percent on Friday. Japanese financial markets were closed on Monday, when markets elsewhere in Asia had posted gains.

Investors were cheered by reports that Panasonic Corp. is set to buy smaller rival Sanyo Electric Co. in the first major shake-up of Japan`s electronics industry amid the current economic downturn.

The market was keeping a close watch on the US presidential election amid hopes that the next leader will work to revive the world`s largest economy.