Topix Rises Seventh Day as Geopolitical Tensions Ease Japanese stocks rose, with the Topix (TPX) index advancing for a seventh day, as the yen weakened amid signs geopolitical tensions are easing. Skymark Airlines Inc. surged 28 percent on a report AirAsia is considering a bid for the carrier, which has said it risks going out of business. Daikin Industries Ltd., an air-conditioner maker, added 4.5 percent after its rating was raised at Credit Suisse Group AG. Kansai Electric Power Co. climbed 2.6 percent on a report the utility will apply for a power-rate increase as early as this autumn. The Topix gained 0.6 percent to 1,279.33 at the trading break in Tokyo, heading for the highest close since Aug. 1. All but five of the 33 industry groups advanced. The Nikkei 225 Stock Average climbed 0.9 percent to 15,462.58. The yen slid 0.1 percent to 102.62 per dollar after falling 0.2 percent yesterday. “Once geopolitical risks are taken away, investors will return their focus to fundamentals,” said Yusuke Kuwayama, a portfolio manager at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. “Japanese stocks are going strong on the back of strong appetite from domestic investors.” The Topix rebounded 12 percent from this year’s low on April 14 through yesterday amid optimism about the global economy and speculation Japan’s $1.2 trillion Government Pension Investment Fund will buy more domestic shares. Individual investors bought a net 451 billion yen ($4.4 billion) of Japanese shares in the week through Aug. 8, the most since the period ended April 11, according to data from the Tokyo Stock Exchange. Russian Convoy The Red Cross is close to working out details of a safe-passage plan for a Russian aid convoy intended for southeastern Ukraine. The foreign ministers of the two countries “had an intense exchange of opinions” during more than five hours of talks in Berlin, German Foreign Ministry spokesman Martin Schaefer said yesterday. Israel and Palestinian militants agreed to extend their five-day truce for 24 hours. In Iraq, Kurdish and government forces retook the nation’s largest dam from rebels. Futures on the Standard & Poor’s 500 Index added 0.1 percent today. The equity measure jumped 0.9 percent yesterday as tensions eased over global conflicts and Dollar General Corp. rallied on merger activity. The National Association of Home Builders/Wells Fargo sentiment measure climbed to 55 this month from 53 in July, the highest level in seven months. Chugai Pharmaceutical Co. fell 4.4 percent to 3,655 yen after jumping 15 percent yesterday as parent Roche Holding AG was said to be in talks to buy out the Japanese drugmaker. Bloomberg News reported late Aug. 15 that Roche is in talks to buy remaining the 40 percent of Chugai. Chugai said it’s not in talks with Roche. The premium Roche would pay for Chugai is difficult to justify, Barclays Plc said. The Topix traded at 1.2 times book value at the last close, compared with 2.7 for the S&P 500 and 1.8 for the Stoxx Europe 600 Index.
Posted on: Tue, 19 Aug 2014 12:37:19 +0000
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