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Topix Caps First 9-Day Gain Since 2011 on Yen, U.S.

April 3 (Bloomberg) -- Japan’s Topix index rose for a ninth day, its longest winning streak in three years, as the yen weakened yesterday after U.S. data signaled jobs growth in the world’s biggest economy.

Honda Motor Co., which gets about 80 percent of revenue abroad, added 1 percent. Sharp Corp. climbed 1.6 percent after a report it will double shipments to China of energy-efficient liquid-crystal displays for smartphones. Consumer lenders led the advance as all but four of the Topix’s 33 subsectors gained.

The Topix increased 0.4 percent to 1,216.77 at the close of trading in Tokyo, with almost three shares rising for every two that fell. The measure posted its first nine-day rally since a run ended Feb. 17, 2011. The Nikkei 225 Stock Average added 0.8 percent to 15,071.88. The yen traded at 103.90 per dollar after falling for a fifth day yesterday. The Standard & Poor’s 500 Index extended a record yesterday as a private report showed U.S. payrolls grew last month.

“Economic data from the U.S. looks to be changing for the better and at the same time we have the yen weakening, so that’s making investors feel good,” said Takashi Aoki, who helps oversee the equivalent of $37.6 billion at Mizuho Asset Management Co. in Tokyo. “Japanese shares, which have performed quite badly, have mostly priced in concerns for a backlash to the economy from the sales-tax increase. The Topix is on a rising streak after it fell too much earlier.”

Companies in the U.S. boosted payrolls by 191,000 in March, according to data yesterday from the ADP Research Institute. The median forecast of 38 economists surveyed by Bloomberg was for a 195,000 advance. The government’s monthly jobs numbers for March are due tomorrow. A separate report indicated February factory goods orders rose 1.6 percent, topping an estimated advance of 1.2 percent. Futures on the S&P 500 were little changed today.

Likely Optimistic

“Investors are likely to be optimistic toward the weekend as the ADP jobs data is seen as a precursor to the official payrolls report,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co. in Tokyo. “I’d expect to see buying of exporters again today.”

The yen lost as much as 0.2 percent against the dollar today before trading little changed at the stock-market close.

Automakers and consumer electronics producers were among the biggest boosts to the Topix today. Honda, which gets about 44 percent of sales from North America, gained 1 percent to 3,700 yen. Canon Inc., the world’s biggest camera maker, added 0.6 percent to 3,220 yen.

Sharp rose 1.6 percent to 326 yen. The electronics maker will target monthly exports to China of 5 million IGZO liquid-crystal display smartphone panels, the Nikkei newspaper reported. It currently ships 2 million to 3 million panels a month, according to the Nikkei.

Quarterly Drop

The Topix capped a 7.6 percent drop last quarter, the most among developed markets tracked by Bloomberg. An appreciating yen and concern about this month’s sales-tax increase punished shares more than the rest of the world at a time when China’s slowdown, Russia’s annexation of Crimea and worry that the U.S. will raise interest rates sooner than anticipated made gains harder to come by.

Consumer lenders led gains among the Topix industry groups today. Orix Corp. advanced 2 percent to 1,513 yen. The company will post a capital gain of about 15 billion yen ($144 million) in the April-to-June quarter from the sale of Monex Group Inc. shares to Shizuoka Bank Ltd., and investors should expect an increase in dividends, Deutsche Bank AG analyst Masao Muraki wrote in a report.

To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net

To contact the editors responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net Tom Redmond, Jim McDonald

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