TOKYO — Japanese stocks rose for the first time in five days on speculation that earnings are improving after Canon forecast its biggest profit increase in a decade and the stronger dollar boosted the outlook for exporters.
Canon, the world’s biggest camera maker, gained 1.9 percent. Nippon Electric Glass surged 7.7 percent after saying annual earnings will more than double. Sony and Honda added more than 4 percent after the Nikkei newspaper said their earnings will rise and the dollar climbed from a six-week low against the yen. Toyota slumped 1.8 percent after expanding a vehicle recall and extending a sales halt of its top-selling models.
The Nikkei 225 stock average rose 1.3 percent to 10,385.99 at the 11 a.m. break in Tokyo. The broader Topix index gained 0.8 percent to 914.81, with three stocks advancing for every two that retreated.
“The continuing recovery in the global economy, sustained improvement in earnings and the weakening yen are bolstering the market,” said Yoshihiro Ito, senior strategist at Okasan Asset Management, which oversees the equivalent of $8.3 billion.
The Topix lost 5.1 percent in the past four days following declines in commodities, the dollar and global equities. The drops drove down the average price of Topix-listed shares to 1.1 times book value, the lowest level since Dec. 23, data compiled by Bloomberg show. That’s also the cheapest valuation among the world’s 10 biggest markets.
The dollar rose after Thom as Hoenig, president of the Federal Reserve Bank of Kansas City, called for an increase in the U.S. central bank’s benchmark interest rate.
