TOKYO: Japanese shares swung between gains and losses after the Topix index rose for a seventh day on Monday to close at the highest level since 2007.
Japan Airlines Co. climbed 4.4 percent, leading airlines to the largest advance among the Topix’s 33 industry groups. Nippon Paper Industries Co. jumped 3.4 percent, the most on the Nikkei 225 Stock Average, after announcing a target to double operating profit in three years. Nomura Holdings Inc. fell a second day as brokerages led declines.
The Topix index slipped less than 0.1 percent to 1,658.65 at 12:39 p.m. in Tokyo after climbing as much as 0.2 percent. The Nikkei 225 advanced less than 0.1 percent to 20,422.65, trading at a 15-year high. U.S. cash-equity markets were closed Monday for the Memorial Day holiday. The yen fell 0.2 percent to 121.77 per dollar.
“I still see the Japanese market as vulnerable to a correction but it continues to be a market you want to buy on the dips,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages about $124 billion, said by phone. “You have very strong liquidity support, you have strong momentum in earnings growth and economic indicators, and valuations are not too demanding.”
The nation’s exports rose more than forecast in April, a report showed Monday, after data last week indicated gross domestic product expanded for a second quarter. The Topix, which has climbed 18 percent this year, traded at 16.1 times estimated earnings at yesterday’s close, compared with 18 times for the Standard & Poor’s 500 Index on Friday.
