TOKYO: Most Japanese stocks rose, after the Topix index swung between gains and losses, as investors assessed the Federal Reserve’s signal that is may raise U.S. interest rates in December amid confidence about the outlook for the U.S. economy. Nintendo Co. and DeNA Co. plunged.
Shares of both companies sank at least 9 percent after Nintendo announced a smartphone game the two have been developing will be delayed by at least three months. Drug manufacturers gained as the Wall Street Journal reported Pfizer Inc. and Allergan Plc. are considering a merger, setting the stage for one of the largest deals in the pharmaceutical industry. Lens maker Hoya Corp. surged 6.9 percent after announcing a share buyback. Brokerages tumbled as Nomura Holdings Inc. and Daiwa Securities Group Inc. posted disappointing earnings.
The Topix index closed little changed at 1,547.11 in Tokyo, with five shares rising for every four that fell. The Nikkei 225 Stock Average added 0.2 percent to 18,935.71. The yen advanced 0.3 percent to 120.78 per dollar after weakening Wednesday as Fed policy makers left interest rates unchanged, while giving themselves the option to increase borrowing costs at their next meeting by saying growth in the U.S. remains “moderate.” The Bank of Japan meets Friday to review policy.
“If a December rate hike begins to look more likely, it may be a positive for the U.S., but it could once again put stress on emerging countries,” said Yusuke Kuwayama, a portfolio manager at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. “As Japan has quite a bit of exposure to China and other Asian developing countries, we could see Japanese shares lag” their peers in the U.S.
