2014.04.1603:19:03UTC+00Japanese Shares Soar as Tech Stocks, SoftBank Bolster

Japanese shares rallied higher a second day, with the Topix index on track for its biggest surge in seven weeks, as technology firms including SoftBank Corp. advanced.

SoftBank skyrocketed 8.3 percent after Alibaba Group Holding Ltd., China's biggest e-commerce firm, recorded its fifth consecutive quarterly earnings increase. SoftBank possess about 37 percent of Alibaba. Yahoo Japan Corp. jumped 3.9 percent. DeNA Co., which operates a social-media site, climbed 9.1 percent after its rating was lifted at Credit Suisse Group AG. J-COM Holdings Co., which provides staff-placement and outsourcing services for mobile-phone firm, declined 3.2 percent after trimming down its full-year earnings projected by 77 percent.

The Topix boosted 1.9 percent to 1,157.88 at the break in Tokyo, on tracked for its largest increase since February 21. All 33 industry groups advance. The Nikkei 225 Stock Average leaped 2.3 percent to 14,313.73. The yen relinquished 0.3 percent to 102.21 per dollar after sliding lower less than 0.1 percent yesterday. Twitter Inc. shares soared 11 percent yesterday after saying it hired Google Inc. executive Daniel Graf to be its new vice president of consumer products.

“The news about Alibaba and Twitter is giving tech stocks a reason to rebound after a sharp selloff on valuation concerns,” said Tomomi Yamashita, who helps oversee the equivalent of $5 billion at Shinkin Asset Management Co. in Tokyo. “We may see investors buying back shares as we head towards earnings season.”

Alibaba Profits

China’s Alibaba recorded an increase in fourth-quarter earnings as analysts prepare to lift their valuations ahead of a possible U.S. initial public offering. Net income attributable to normal shareholders more than doubled to $1.35 billion in the three months ended December. Alibaba was worthed at $153 billion in February, according to the average projection of 10 analysts recorded by Bloomberg.

Futures on the Standard & Poor’s 500 Index spiked up 0.3 percent today after the U.S. gauge increased 0.7 percent yesterday.

Japan’s administration may bring down its economic evaluation for the first time since November 2012 amid a decline in consumption after a sales-tax hike, the Nikkei newspaper reported, without citing anyone.

Data today revealed China’s economic development slowed to the weakest pace in six quarters, testing leaders’ commitment to keep reining in a credit boom and pollution as risks mount that the world’s second-biggest economy will miss its 7.5 percent annual growth goal.

Gross Domestic Product of China

Gross domestic product rallied 7.4 percent in the January-to-March period from a year earlier, the National Bureau of Statistics said, compared with the 7.3 percent median projection in a Bloomberg News survey of analysts. Development slowed from 7.7 percent in the three months through December.

Ukraine unleashed an offensive to force out militants from towns in its eastern Donetsk region as the authorities in Kiev said elements of Russian special forces were identified among the anti-government forces. Russia’s prime minister said the country risks civil war.

The Topix plunged down 6.7 percent last week to continue its 2014 sagged down to 13 percent, the sharpest among 24 developed markets recorded by Bloomberg. The Japanese calculate’s 14-day relative strength index depreciated to 33 on April 14, near the 30 threshold some traders view as an indication the index has sagged down too far.

“The Nikkei 225 and the Topix were at levels that are oversold and are in a buying zone,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc.