TOKYO (AP) — Japanese stocks rose Monday after a two-day decline, with buying centred on shipping and steel shares on expectations for solid earnings in the current fiscal year.The benchmark Nikkei 225 stock index added 157.29 points, or 0.90 percent, to finish at 17,556.87 points on the Tokyo Stock Exchange. On Friday, the index fell 0.57 percent.

Investors bid up shipping and steel shares on expectations for healthy earnings for the fiscal year through March 2008. Gainers included Mitsui O.S.K. Lines Lines, which climbed 6.76 percent to 1,642 yen ($13.57) and Tokyo Steel MFG Company, which rose 1.12 percent to 1,901 yen ($15.71).

Machinery stocks also advanced, with Komatsu Limited rising 4.10 percent to 3,050 yen ($25.21).

The broader Topix index, which includes all shares on the exchange's first section, added 14.98 points, or 0.88 percent, to 1,710.67 points.

In currencies, the US dollar was trading at 121.26 yen at 2:50 p.m. Monday, up from 121.15 yen late Friday in New York. The euro rose to $1.3514 from $1.3505.