TOKYO: Japan stocks rose after the yen fell against the dollar as a surge in U.S. payrolls fueled bets the Federal Reserve will raise interest rates sooner.
Funai Electric Co., which gets two-thirds of its revenue from the U.S., jumped 3.3 percent. Nippon Telegraph & Telephone Corp. jumped 4.7 percent and is headed for the highest close since 2001 after reporting better-than-expected earnings. Dai-ichi Life Insurance Co. rose 2.8 percent after Bloomberg News reported the insurer is seeking closer ties with Resona Holdings Inc. to boost sales. Olympus Corp. lost 2.8 percent after releasing net income that missed estimates and saying a U.S. probe into its medical business could hurt earnings.
The Topix advanced 0.4 percent to 1,423.05 as of 12:37 p.m. in Tokyo, with more than two stocks rising for each that fell. The Nikkei 225 Stock Average added 0.4 percent to 17,710.98. The yen gained 0.2 percent to 118.83 per dollar after falling 1.3 percent on Friday following a report showing U.S. employers added workers and boosted wages more than expected. Treasury yields rose as investors reaffirmed expectations of an interest-rate hike later this year. U.S. stocks fell after the report.
“We can say the American economy is strong, but it’s too early to say that U.S. company earnings will also improve,” said Tomomi Yamashita who helps oversee the equivalent of $6.3 billion at Shinkin Asset Management Co. in Tokyo. “U.S. valuations seem a bit high and without the support of low interest rates, further stock gains might be capped. That could also make it harder to revise Japanese valuations higher, so we may lack the energy to break through the Nikkei’s 18,000 level.”
