Japanese Stocks Post Best Winning Streak in Nine Months on Yen

  • SoftBank drags the most on Topix after ARM deal announcement
  • Nintendo surges third day; exporters gain as yen weakens

Japanese shares gained, with the Topix index capping its longest winning streak in nine months, as a weaker yen boosted exporters, countering a drop in SoftBank Group Corp.

The Topix rose 1.1 percent to 1,331.39 at the close in Tokyo. The measure’s sixth consecutive advance is its longest streak of gains since Oct. 7. The Nikkei 225 Stock Average increased 1.4 percent. The yen traded at 106.06 per dollar on Tuesday after sliding 1.2 percent Monday, when equity markets were closed for a public holiday. SoftBank posted its biggest decline in four years after agreeing to buy the U.K.-based ARM Holdings Plc for $32 billion.

The Topix rallied 8.9 percent last week, its best performance since December 2009, as the yen dropped more than 4 percent. Equities jumped after Prime Minister Shinzo Abe’s win in upper-house elections spurred optimism the government had a stronger mandate to add fiscal stimulus, while Ben Bernanke’s visit to Tokyo last week added to speculation over the potential adoption of helicopter money.

“Expectations for stimulus are continuing to support shares,” said Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management Co. in Tokyo. “Even if they don’t do helicopter money, they’ll probably increase fiscal stimulus.”

Electric-appliance producers were the biggest boost to the Topix among the 33 industry groups, while a gauge tracking mobile-phone stocks dragged on the measure.

  • SoftBank dropped 10 percent, the biggest drag on the Topix. The company’s offer for ARM is 53 times higher than the U.K. chip designer’s trailing 12-month earnings before interest, taxes, depreciation and amortization.
  • Nintendo Co. rose 14 percent as investor frenzy over its mobile game Pokemon Go continued. The gamemaker traded 703.6 billion yen ($6.64 billion) on Tuesday, the biggest daily turnover for any company on the Tokyo Stock Exchange ever, the bourse said.
  • McDonald’s Holdings Co. (Japan) jumped 5.3 percent to close at its highest level since 2002 after it began offering Pokemon toys with Happy Meals on July 15.

Futures on the S&P 500 Index slipped 0.2 percent on Tuesday. The underlying gauge climbed 0.2 percent on Monday, closing at a record, as technology shares rallied amid deal activity while corporate earnings spurred optimism that results this season will be sturdy enough to help sustain equities at record levels.

In Osaka, futures on the TSE Mothers Index of high-growth companies began trading. The September expiry contracts traded at 924.5 on Tuesday, while the Mothers fell 0.6 percent to close at 941.65. Options on the JPX-Nikkei Index 400 also started trading today.

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