Asian stocks rose this week, sending the benchmark index to its biggest advance in three weeks, amid optimism U.S. lawmakers would make a deal to raise the nation’s borrowing cap and avert a default. Japanese shares advanced as the yen weakened.
Japanese stocks may extend gains as a cluster of technical indicators signal a continuing rebound in the worst-performing equity market in the developed world this quarter, according to Tachibana Securities Co.
Japanese shares rose, with the Topix index advancing for a second day amid low volume, as exporters rose after the yen dropped for a third day. Developers and brokerages led gains among the gauge’s 33 industry groups.
Nissan Motor Co., the biggest Japanese automaker by sales in China, said deliveries in the country have been affected as it cut back on marketing events in the wake of violent anti-Japan demonstrations last month.
Japan’s Nikkei 225 Stock Average may climb to 10,000 as early as this week after its 25-day moving average entered a sustained rising trend for the first time since the end of April, according to technical analysis by Tachibana Securities Co.
Japanese stocks fell for the first time in three days as engineers struggled to connect power to a crippled nuclear reactor and Tokyo officials advised against giving tap water to infants after finding traces of radioactive iodine.