TOKYO: Japanese stocks rose, reversing earlier losses, as gains by financial shares outweighed declines by energy explorers.
Pharmaceutical makers Eisai Co. and Shionogi & Co. added at least 2.9 percent. Consumer lenders posted the biggest advance among the Topix index’s 33 industry groups. Energy explorers Inpex Corp. and Japan Petroleum Exploration Co. fell at least 2.3 percent as crude oil prices held below $49 a barrel. Mitsubishi Materials Corp. slid 2.7 percent after copper dropped yesterday.
The Topix added 0.1 percent to 1,525.67 at the close in Tokyo, erasing a loss 0.6 percent to advance for the first time in three days. The Nikkei 225 Stock Average rose 0.3 percent to 18,723.52. The dollar surged to its strongest level against the euro in almost 12 years as the U.S. benchmark stock gauge slumped on Tuesday, erasing all its gains this year. The yen weakened 0.2 percent to 121.32 per dollar today.
“Japanese company earnings are good, the weaker yen is a boon, and there’s stable buying demand from public institutions,” said Yusuke Kuwayama, a portfolio manager at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. “Given the stability of Japanese stocks, we see very strong demand from both domestic and overseas players, so when it falls we should see this kind of supporting flow come in.”
The Topix has jumped 8.4 percent this year, compared with a 0.7 percent loss on the Standard & Poor’s 500 Index.
