TOKYO: Japanese stocks rose, rebounding from a one-month low, after US equities advanced ahead of a monthly employment report.
Nintendo Co Ltd soared 6.3 per cent after after President Satoru Iwata said the company’s move into mobile gaming will help double profit this fiscal year. Yamada Denki Co rose 0.8 per cent after the electronics retailer announced an alliance with Softbank Corp and forecast better-than-expected operating profit. Softbank rallied 2.6 per cent, the most since February. Sumitomo Rubber Industries Ltd tumbled 7.6 per cent after posting a decline in quarterly operating income.
The Topix index climbed 0.6 per cent to 1,583.51 as of 9.39am in Tokyo, headed for a weekly loss of 0.1 per cent in a week shortened due to holidays. Two stocks rose for each that fell today. The Nikkei 225 Stock Average added 0.5 per cent to 19,383.25. The yen traded at 119.81 per dollar after weakening yesterday for the first time in four days.
“The stock market was shaken yesterday after long-term interest rates spiked following the holiday, but this catalyst seems to be calming down,” said Juichi Wako, a senior strategist at Nomura Holdings Inc in Tokyo. “If payrolls rebound to show growth of 240,000 to 250,000, we’ll see US long-term yields spike and the yen weaken, which will be positive for Japanese shares. But if the data is worse than expected, we could see global stocks suffer a deeper correction as the market shifts toward a deflationary story.”
