TOKYO: Japanese stocks rose after China cut interest rates on Friday and amid speculation the Bank of Japan will also boost stimulus this week.
Sony Corp. added 3.8 percent after people familiar with the matter said it is in talks to buy Toshiba Corp.’s image-sensor business for 20 billion yen ($165 million). Toshiba gained 4.1 percent. Exporters rose after the yen weakened to the lowest against the dollar in two months on Friday, sending TDK Corp. 3 percent higher. Panasonic Corp. surged 7.6 percent after the Nikkei newspaper reported first-half operating profit at the electronics maker will be about 200 billion yen, beating analyst estimates. Shippers were the biggest decliners on the Topix index after Nippon Yusen KK said it expects to miss first-half profit targets, sending shares 3.6 percent lower.
The Topix added 1.3 percent to 1,567.49 as of 12:39 p.m. in Tokyo, building on last week’s gains of 2.8 percent, as all but four of its 33 industry groups rose. The Nikkei 225 Stock Average climbed 1.2 percent to 19,056.72, rising above 19,000 for the first time in two months. The Standard & Poor’s 500 Index erased its loss for the year on Friday after policy makers in China cut interest rates and lenders’ reserve requirements, while their counterparts in Europe last week signaled they will bolster stimulus if needed.
“China’s brought in various easing measures after the European Central Bank alluded to additional easing, and we still have the expectation that Japan may do something at the Bank of Japan meeting toward the end of this week,” said Hiroaki Hiwada, a Tokyo-based strategist at Toyo Securities Co. said by phone. “We’d had a lack of positive factors in the market, but these will be seen favorably.”
