Japanese stocks rose, boosted by exporters, as the yen headed for its longest losing streak against the dollar since August after U.S. factory data that beat estimates added to expectations for a Federal Reserve rate hike. The Topix index traded 0.3 percent higher as of 9:04 a.m. in Tokyo. The yen fell for a sixth day, losing 0.2 percent to 101.82, after a report showed manufacturing expanded in September, fueling confidence in a recovery that is key to determining the Fed’s path toward higher rates. The two-day rally in the Topix follows a 2 percent decline last week after concern over Deutsche Bank AG’s financial troubles weighed on global stock markets.
Security Percent Change Price
Topix +0.3% 1,334.99
Nikkei 225 +0.4% 16,670.34
Yen-Dollar -0.2% 101.87
“Overall, the U.S. economy appears to be on a growth track,” said Mitsuo Shimizu, a deputy general manager at Japan Asia Securities Group Ltd. in Tokyo. “As some had been expecting a deterioration in the manufacturing figures, alleviation of such worries will help Japanese shares rise.” Futures on the S&P 500 Index climbed 0.1 percent after the underlying equity gauge fell 0.3 percent on Monday. The latest data showed the Institute for Supply Management’s index rose to 51.5 from August’s 49.4 reading that marked the first contraction in six months. A reading above 50 signals growth. Traders boosted the odds of a rate hike by December to 61 percent, up from a 51 percent a week ago, after the Fed stood pat on raising rates at its September policy meeting.