Japan’s Topix index rose for a fifth day, capping the longest win streak since April after swinging most of the day, as tiremakers climbed after the yen weakened. Gains were limited as utilities led declines.
A Topix (TPX) group tracking rubber manufacturers jumped 4.5 percent as the yen fell beyond 100 per dollar for the first time in a month. Tokyo Electric Power Co. (9501) plunged 10 percent after surging 19 percent yesterday. Suntory Beverage & Food Ltd., Asia’s largest initial public offering this year, traded 1.5 percent higher on its market debut.
The Topix rose 0.2 percent to 1,173.81 at the close in Tokyo after falling 0.5 percent. Volume was 26 percent below the 30-day average as investors awaited monthly U.S. jobs figures for signs the Federal Reserve may taper stimulus. The Nikkei 225 Stock Average lost 0.3 percent to 14,055.56.
“The yen beyond 100 per dollar is a plus for the stock market,” said Masaru Hamasaki, a senior strategist at Tokyo-based Sumitomo Mitsui Asset Management Co., which oversees about $111 billion. “There’s strong demand for profit-taking since the market has risen a lot since last week.”
The Topix advanced 9.8 percent over the past five days, paring its losses from an almost five-year high on May 22 to 8 percent. The gauge is up 37 percent this year amid optimism Japan may beat deflation and achieve sustainable growth.
The yen touched 100.86 per dollar today, the weakest since May 31. A falling yen boosts the value of overseas earnings at Japanese companies when repatriated. Companies in the Bank of Japan’s Tankan survey on July 1 forecast the yen to average 91.20 per dollar in the year ending March 2014, compared with a projection of 85.22 in the previous report.
Bridgestone Corp., the world’s biggest tiremaker, added 5.4 percent to 3,690 yen, leading gains on the Nikkei 225. Sumitomo Rubber Industries, Ltd., Japan’s No. 2 by market value, rose 2.9 percent to 1,731 yen.
The Topix has swung an average of about 2.9 percent daily since May 22. The measure’s 30-day historic volatility closed at 37.68 today after yesterday rising to its highest since the 2011 earthquake. The gauge traded at 14.8 times average estimated earnings, compared with 14.6 for the Standard & Poor’s 500 Index and 12.7 for the Stoxx Europe 600 Index.
Futures on the S&P 500 dropped 0.5 percent. The index fell less than 0.1 percent yesterday ahead of monthly jobs figures due July 5 and the start of earnings season. The U.S. probably added 165,000 jobs in June, according to a Bloomberg survey. Fed Chairman Ben S. Bernanke said record stimulus could be cut if the economy meets projections.
Among stocks that fell, Tokyo Electric, known as Tepco, slumped 10 percent to 559 yen, falling the most in the 1,711-member Topix. The utility surged yesterday after public broadcaster NHK said it will apply to restart reactors, which the company later confirmed.
Suntory Beverage & Food, a unit of Osaka-based Suntory Holdings Ltd., gained 1.5 percent to 3,145 yen after raising almost $4 billion in the initial public offering. The seller of Orangina soda and Boss coffee last week priced its shares near the low end of a projected range after volatile markets curbed demand. The company aims to double sales to 2 trillion yen by 2020 as it expands overseas.
Calbee Inc. (2229), a maker of potato chips, slid 1.6 percent to 9,960 yen after plunging as much as 17 percent in early trading, stoking speculation about a possible trading error.
Mitsubishi UFJ Financial Group Inc. added 0.8 percent to 644 yen after swinging between gains and losses. The country’s biggest lender said it plans to buy Thailand’s Bank of Ayudhya Pcl. The 560 billion yen ($5.6 billion) purchase would be the largest takeover in Asia by a Japanese bank, data compiled by Bloomberg show.
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