TOKYO: Japanese stocks rose for a second day, with valuations on the Topix Index at the cheapest since 2008, after Group of Seven officials agreed to coordinate efforts to tackle Europe's debt crisis and a U.S. service industry gauge rose unexpectedly.
Nippon Sheet Glass Co., which generates 39% of its revenue in Europe, added 2.7%. Toyota Motor Corp., a carmaker that relies on the U.S. for a fifth of its sales, climbed 0.9% after the yen extended losses against the dollar yesterday. Advantest Corp. led chipmakers higher after a measure that tracks the performance of industry stocks rose for the first time in five days.
The Topix gained 0.3% to 710.53 as of 9:16 a.m. in Tokyo, with three stocks advancing for each that fell. The Nikkei 225 Stock Average rose 0.6% to 8,431.99. Stocks also gained after a report Europe's bailout fund was preparing a credit line for Spain.
"Obviously the market is oversold," said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. "Behind the scenes, officials seem to be preparing to rescue Spain, and I think the market is beginning to catch the signal." (Bloomberg/aph)