TOKYO: Japanese stocks rose, paring the Topix index’s first back-to-back weekly drop since January, after the yen weakened against the dollar as U.S. data boosted confidence in the strength of the world’s largest economy.
Murata Manufacturing Co. climbed 3.2 percent as a gauge of electronic goods makers provided the biggest boost to the Topix. Ihara Chemical Industry Co. dropped 5.7 percent after its second-quarter profit declined. Osaka Gas Co. and Electric Power Development Co. led power producers lower as the Nikkei newspaper reported that Environment Minister Yoshio Mochizuki opposed a planned venture between the two firms.
The Topix rose 0.1 percent to close at 1,651.48, dropping 0.9 percent this week. The Nikkei 225 Stock Average added 0.1 percent to 20,407.08. Both gauges swung between gains and losses on Friday after June futures contracts on the Nikkei 225 expired with a settlement price, known as the special quotation, of 20,473.83. The yen traded at 123.53 per dollar after falling 0.6 percent on Thursday.
“The good news for investors is that the U.S. economy is showing signs of life,” said Matthew Sherwood, head of investment markets research in Sydney at Perpetual Ltd., which manages about $21 billion. “Improving U.S. economic data was constructive for risk appetite, with retail sales for May expanding solidly.”
