5:00 PM Tokyo – Stocks in Japan advanced for the third day in a row after a survey of large corporation showed improving sentiment and expectations of weaker yen in the current fiscal year. Weak yen sentiment has been a key driver in attracting foreign investor to Japanese stock market.
Market indexes in Japan extended gains for the third day in a row after a survey of large companies showed improving out and growing consensus for a weaker yen.
Stocks opened lower after China reported weakest growth in manufacturing in four months in June on the cash squeeze.
The Nikkei 225 Stock Average gained 175.18 or 1.3% to 13,852.50 and the Topix jumped 16.86 to 1,150.70.
The yen weakened in Tokyo trading at 98.77 against one dollar.
The latest Tankan survey of large corporation for the quarter to June showed Takan index rose to plus four from minus eight in the period to March, the Bank of Japan said. The index measures sentiment among large companies in five key industries.
Companies in the survey also estimated yen to average 91.20 against one dollar in the fiscal year ending in March 2014 from the previous estimate of 85.22 in March.
Stocks in Review
Toyota Motor Corp increased 70 yen to 6,060 yen and Honda Motor Co. rose 15 yen to 3,700 yen. Nissan Motor Co Ltd increased 11 yen to 1,016 yen.
Sony jumped 55 yen to 2,133 yen. Canon Inc added 5 yen to 3,240 yen and Nikon fell 43 yen to 2,271 yen.
Fanuc Corp advanced 70 yen to 14,450 yen.
Softbank Corp up 30 yen to 5,820 yen and Willcom Inc became the consolidated subsidiary of Softbank, after it received termination of rehabilitation order from Tokyo District Court.
Seven & I Holdings Co gained 45 yen to 3,670 yen. Fast Retailing Co. jumped 450 to 33,900 yen.
Mitsubishi UFJ Financial Group rose 19 yen to 631 yen and Sumitomo Mitsui Financial Group climbed 130 yen to 4,680 yen.
Aeon Company Limited gained 2.3% to 1,332 yen after the department stores operator would post a record operating profit for the March-May quarter.
Hisamitsu Pharmaceutical Co. Inc surged 6.3% to 5,360 yen after its Noven unit received U.S. Food & Drug Administration approval for Brisdelle Capsules, the first non-hormonal therapy to prevent sweating and feverish feelings linked to menopause.
Takashimaya Company, Limited rose 0.9% to 1,014 yen after the specialty stores and restaurant chain operator said first quarter sales were 214,007 million yen and posted operating profit of 6,094 million. Net income for the quarter was 11.32 million yen.