Japan Stocks Rise on Economic Data, Yen; ReproCell Surges
Toyota Motor Corp. (7203) gained 1.4 percent after figures showed Japanese carmakers’ U.S. production rose 36 percent last year, helped by a weaker yen. ReproCell Inc. (4978), a stem-cell research company, began trading on the JASDAQ Index more than five times higher than its initial public offering price after going untraded for two days. Developers and insurers climbed the most among the Topix’s groups.
The Topix added 2.2 percent to 1,122.99 as of 9:30 a.m. in Tokyo, bringing its increase for the week to 2.1 percent. It’s down 1.2 percent this month and up 8.5 percent for the second quarter. The Nikkei 225 Stock Average advanced 1.7 percent to 13,434.22.
“The market is reacting to improving economic reports,” said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd., Japan’s fifth-largest lender by market value. “Investors will be buying back short positions in the near term.”
The Topix has fallen 14 percent from an almost five-year high on May 22 through yesterday. The measure traded yesterday at 13.9 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 were little changed. The gauge rose 0.6 percent yesterday, capping its biggest three-day rally since January. Data showed gains in consumer spending, household spending and sales of previously-owned homes, while jobless claims fell.
In Japan, figures released today for May showed industrial production rose more than expected and consumer prices excluding fresh food were unchanged from a year earlier, halting a six-month slide.
To contact the editor responsible for this story: Nick Gentle at email@example.com