(Updates to midafternoon)

TOKYO, July 7 (Reuters) - The Nikkei stock average rose 1 percent on Monday, on track to break its longest losing streak in more than half a century, on a softer yen and gains in other Asian markets.

Trend Micro Inc (4704.T: Quote, Profile, Research) jumped 3.2 percent on a brokerage upgrade that cited the strong second-quarter outlook of the computer security software maker.

After ending the morning lower, the market rose in the afternoon as the dollar built on gains against the yen and the Chinese market climbed sharply.

"Many investors had thought a rebound was due anytime now, and such people took a change in forex as a cue to unwind stock selling and yen buying positions," said Kenichi Hirano, operating officer at Tachibana Securities.

The dollar rose to 107.12 yen JPY=, its highest level in over a week.

As of 0427 GMT, the benchmark Nikkei .N225 was up 130.37 points at 13,368.26, on course to post a gain after a 12-day losing streak.

The broader Topix .TOPX gained 1.1 percent to 1,311.59.

Trend Micro rose to 3,600 yen after Mitsubishi UFJ Securities lifted its rating to "1" from "2", saying the computer security software maker is expected to beat its own forecast for the second quarter, bolstered by growth in both corporate and consumer sales despite an economic slowdown.