TOKYO: Japanese stocks rose in afternoon trading, reversing earlier losses, as investors weighed slumping commodity prices with expectations for economic stimulus. Sharp Corp. jumped, while airlines and insurers dropped.
The Topix index added 0.2 percent to 1,605.94 at the close in Tokyo after falling as much as 0.3 percent. The Nikkei 225 Stock Average rose 0.2 percent to 19,924.89, the highest close since Aug. 20. U.S. stocks retreated on Monday amid a slump in commodity prices after capping the best week of the year on Friday. The world’s biggest economy reports updated third-quarter growth on Tuesday.
“Investors want to wait and see the U.S. data coming this week and Japan’s new policy to raise the potential growth rate to reach its gross domestic product target,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “It is possible markets will lack a sense of direction.”
E-mini futures on the Standard & Poor’s 500 Index fell 0.1 percent. The underlying gauge slipped 0.1 percent Monday as expectations the Federal Reserve will soon raise U.S. interest rates boosted the dollar, sending commodity producers and energy shares lower. Tuesday’s second reading on U.S. GDP growth is expected to show the economy expanded at an annualized rate of 2.1 percent in the third quarter, stronger than the initial estimate of 1.5 percent.
