Japanese stocks rose, with the Topix (TPX) index climbing a third day, after the yen weakened past 100 per dollar as the U.S. Senate backed away from a vote authorizing a military strike against Syria.
The Topix gained 0.8 percent to 1,199.11 as of 9:01 a.m. in Tokyo. The yen traded at 100.31 per dollar. The U.S. Senate stepped back from a vote to permit air strikes as Russia brokers a plan for the Middle Eastern country to surrender its chemical weapons. The Nikkei 225 Stock Average added 0.6 percent to 14,504.89.
“Investors are taking on more risk amid a global stock rally as concern recedes over military intervention,” said Hiroichi Nishi, a Tokyo-based equities manager at SMBC Nikko Securities Inc., a unit of Japan’s second-biggest lender. “That’s pushing the yen downward, which is raising expectations for higher earnings at Japanese exporters.”
The Topix surged 38 percent this year through yesterday, with Japanese equities performing the best among developed markets tracked by Bloomberg, amid optimism Prime Minister Shinzo Abe and the Bank of Japan can lead the country out of deflation through unprecedented monetary easing.
Futures on the Standard & Poor’s 500 Index fell 0.1 percent today. The measure climbed yesterday in New York, extending the longest winning streak since July, as data showed China’s economy is improving and tension over Syria receded.
The Topix traded at 1.24 times book value yesterday, compared with 2.47 times for the S&P 500 Index and 1.74 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. The Japanese gauge’s historic volatility was at 24.15 yesterday, compared with its five-year median of 19.42.
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