TOKYO: Japanese shares rose for the first time in seven sessions as investors cheered earnings from Sojitz Corp. and Mitsubishi Heavy Industries Ltd. while exporters gained after the yen fell.
The Topix index climbed 0.6 percent to 1,306.66 at the close in Tokyo, with more than twice the number of shares advancing as declining. The Nikkei 225 Stock Average added 0.7 percent to 16,216.03. The yen slipped 0.4 percent to trade at 107.52 per dollar after rising 0.1 percent on Friday. The S&P 500 Index added 0.3 percent after U.S. jobs data showed American employers added fewer workers than economists estimated in April, bolstering speculation a rate increase will be gradual.
“While stocks don’t look extremely cheap, those who were short-selling shares probably see it as a good moment to buy back a little,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo. Investors “aren’t simply looking at the superficial earnings numbers, but are looking into more of the details, and becoming calmer.”
The Topix short-selling ratio rose to 41 percent on Friday, its highest level since April 7, after the measure posted its longest losing streak since mid-January. Volume on the Topix was about 21 percent below the 30-day average. The gauge trades at 12.6 times its estimated earnings. That compares with 17.6 times for the S&P 500 Index and 15.3 times for the Stoxx Europe 600 Index.
