Nikkei up in early trade

Asian stock markets posted modest gains Monday as Wall Street's gains last week and a weaker yen lifted exporters in Japan, eclipsing concerns about the ruling party's defeat in upper house elections.

The benchmark Nikkei 225 stock average reversed early losses and was up 0.1 percent at 9,598.07.

Japanese voters handed a stinging electoral defeat to Prime Minister Naoto Kan's party Sunday, which lost its slim majority in the upper house. The results reflect voters' rejection of Kan's proposal to raise taxes to lower the country's ballooning debt and points toward policy uncertainty in the months ahead.

In New York on Friday, the Dow Jones industrial average rose 0.6 percent 10,198.03. The finish marked its best week in a year as investors placed their last bets before the start of second-quarter earnings reports.

Sentiment also rose from news that China renewed Google's license to operate in the country.