TOKYO (Reuters) – Japan’s Nikkei topped a six-month peak on Monday, propelled by exporters with the yen trapped at a multi-month trough against the dollar and investors expecting the Bank of Japan to maintain its stimulus drive even as the U.S. Federal Reserve tapers off.
Index heavyweight SoftBank Corp surged 3.8 percent to a 13-year high, building on Friday’s 2.3 percent rise after hedge fund manager Daniel Loeb revealed a $1 billion-plus stake in the mobile operator.
“People are starting to realise and appreciate the fact that it holds a lot of Alibaba. It’s not just a Japan stock anymore, it’s a global stock now, so it is sort of re-rating there,” a Tokyo-based senior trader at a foreign bank said.
SoftBank, which holds some 30 percent in Alibaba, China’s biggest e-commerce company, was the top-weighted gainer in the Nikkei and the most-traded on the main board.
The Nikkei was up 1.3 percent at 15,575.34, within sight of a 5-1/2 year peak of 15,942.60 reached on May 23.
Risk appetite also got a boost after the Standard & Poor’s 500 close above 1,800 for the first time, while the Dow Jones industrial average ended at another record high above 16,000.
“We are finally starting to see some people picking up autos, and we are quite active in the core names,” the senior trader said, adding that hedge funds were the main buyers.
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The weaker yen helped lift the appeal of currency-sensitive exporters, with Honda Motor Co Ltd , Panasonic Corp , TDK Corp and Yokogawa Electric Corp up between 1.1 and 3.4 percent.
The yen slumped to 4-1/2 month low of 101.47 yen to the dollar on Monday. Data showed currency speculators increased net short positions in the Japanese currency to the most in six years, reflecting a belief the Bank of Japan will stay the most aggressive in maintaining its stimulus campaign among major central banks.
Powered by massive fiscal and monetary stimulus, the benchmark Nikkei has risen 50 percent this year, gunning for its best yearly performance since 1972.
The broader Topix index gained 0.7 percent to 1,257.72 in mid-morning trade, with volume at 33 percent of full daily average for the past 90 trading days.
Fast Retailing Co Ltd rose 2.5 percent after the Wall Street Journal, citing two sources, said the operator of Uniqlo fashion chain is planning a secondary listing in Hong Kong.
Sharp Corp jumped 4.4 percent, adding to a 8.4 percent rally in the previous session after the Nikkei newspaper said the display producer would supply Chinese telecom maker ZTE Corp with its power-saving IGZO display panels.
(Editing by Eric Meijer)