TOKYO: Japanese stocks gained for a second day, with the Nikkei 225 Stock Average heading for a one-week high amid the preparation of Federal Reserve Chairman Ben S. Bernanke to do more to stimulate U.S economic growth.
The Nikkei 225 escalated 0.5% to 9,604.15 as of 9:22 a.m. in Tokyo, heading for the highest close since April 18. Volume on the gauge was almost a quarter below the 30-day intraday average.
Meanwhile, the broader Topix Index gained 0.7% to 814.88, with almost three times as many shares advancing as declining.
The higher index was also supported by positive performance from Honda Motor Co. gaining by 1.6%, while Canon Inc. rising by 0.7%. However, Fanuc Corp., the second-heaviest weighted stock on the Nikkei, slumped 5.7% after the maker of factory robots forecasted lower operating profit.
“The Federal Reserve didn’t rule out the possibility of additional monetary easing,” said Mitsushige Akino, who oversees about US$600 million in Tokyo at Ichiyoshi Investment Management Co. “That’s leading to confidence among investors.” (Bloomberg/t01/aph)