Japan’s Topix Surges to Highest Since 2007 on Exporters, MUFJ

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Japan’s Topix index climbed to the highest level in more than seven years as a weaker yen boosted exporters and the nation’s largest lender gained on speculation it will seek overseas assets.

Toyota Motor Corp., which gets three-fourths of sales overseas, rose the most in more than two months. Mitsubishi UFJ Financial Group Inc. jumped 3.3 percent after people with knowledge of the matter said the lender was among firms in discussion to buy financial assets from General Electric Co. Central Japan Railway Co. advanced 3 percent after its magnetic-elevated train set a world speed record. Kagoshima Bank Ltd. rose 2.6 percent after beating its net income forecast.

The Topix added 1.7 percent to 1,608.88 in Tokyo, rising the most since Feb. 4 to close at the highest level since November 2007. The Nikkei 225 Stock Average advanced 1.4 percent to 19,909.09. The yen lost 0.3 percent to 119.49 per dollar, weakening for a second day.

“The market has room to go higher on the back of growing profits,” said Kenji Ueno, a senior investment manager at Sompo Japan Nipponkoa Asset Management Co. in Tokyo. “Every sell-off has been met with a flurry of buyers and this peace of mind is providing a floor to the market. Pent up demand from the public side also means it’s quite difficult to have a sustained correction.”

Exporters rallied after the yen extended yesterday’s losses after strengthening the previous six trading sessions. Toyota rose 2.2 percent, the most since Feb. 4, to provide the biggest boost to the Topix. Nissan Motor Co., a carmaker that gets 77 percent of revenue abroad, added 2.4 percent.

GE Talks

Mitsubishi UFJ, Japan’s largest lender by assets, jumped 3.3 percent. The bank is in talks with GE, which is seeking to sell the bulk of its lending unit, with Blackstone Group LP and Wells Fargo & Co. also taking part in discussions, according to people familiar with the discussions.

Kagoshima Bank rose 2.6 percent after reporting preliminary full-year net income of 13.5 billion yen, beating its forecast for 10.2 billion yen. The regional lender has gained 15 percent this year, compared with a 19 percent advance for the Topix Banks index.

Bullet Train

Central Japan Railways strengthened 3 percent after its maglev train accelerated to a record 603 kilometers per hours (375 miles per hour) during a test. The company plans to start using the train for the Tokyo-Nagoya line in 2027 as well as selling the technology overseas.

E-mini futures on the Standard & Poor’s 500 index added 0.3 percent after the underlying measure gained 0.9 percent on Monday in New York, with technology companies rebounding from a selloff in the previous trading session.

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