TOKYO: Japanese stocks rose, with the Topix index heading for its highest close since 2007, as the market reopened from a holiday during which the yen weakened and a report showed machine orders jumped more than forecast
Toyota Motor Corp., the world’s biggest carmaker by market value, added 1.8 percent. Fanuc Corp. jumped 4.1 percent, gaining for a second day after activist investor Daniel Loeb’s hedge fund Third Point said it invested in the robot maker. Dentsu Inc., Japan’s biggest advertising agency, gained 3.5 percent ahead of its earnings release. SoftBank Corp. lost 0.5 percent after reporting a drop in net income.
The Topix index advanced 1.7 percent to 1,451.55 as of 12:35 p.m. in Tokyo, on course for its highest close since December 2007. All but three of its 33 industry groups rose. The Nikkei 225 Stock Average added 1.9 percent to 17,982.01. The yen traded at 120.33 per dollar after weakening 1.5 percent in the past two days.
“A weaker yen is aiding gains in Japanese stocks, and also it was a holiday yesterday, therefore Japan is playing catch-up,” said Andrew Clarke, director of trading at Mirabaud Securities Asia Ltd. in Hong Kong. The Standard & Poor’s 500 Index gained 1.1 percent on Tuesday.
A government report showed Japanese machine orders surged 11.4 percent in December from a year earlier, double the pace estimated by economists, and rose 8.3 percent on the month, beating estimates for a 2.3 percent gain.
“The machinery orders numbers were extremely good.” said Clarke. It reflects a weaker yen and I would say it underlines the fact that Abenomics is working, despite its critics.’’
