TOKYO, June 26 (Reuters) - Japan's Nikkei stock average rose 0.2 percent on Friday, buoyed by hopes the U.S. economic recession may be easing and gains by oil-linked shares such as Nippon Oil Corp.
Nippon Oiljumped over 4 percent after a newspaper reported that it and other Japanese companies are in the final stage of talks with Iraq to win the development contract for the country's huge Nassiriya oilfield.
Rises in oil prices, with crude extending gains to above $70, also helped boost the sector.
The benchmark Nikkei, which briefly dipped into negative territory, gained 23.21 points to 9,819.29. The broader Topix rose 0.3 percent to 922.68. (Reporting by Elaine Lies)