The Topix index gained 4.7, or 0.3 percent, to 1684.79 as of 1:37 p.m. in Tokyo. The Nikkei 225 Stock Average added 30.99, or 0.2 percent, at 16,520.36. For the week, the Nikkei has risen 1.1 percent and the Topix has gained 1.3 percent.
Shares jumped in early trading after Ministry of Finance figures today showed that Japanese stocks attracted more overseas buying last week than at any time this year.
Gains diminished as some investors, including T&D Asset’s Kamiya, said that corporate earnings have yet to reflect the improving prospects for the world’s second-largest economy, which have are already been priced into the shares.
Shares of companies in the 1,692-member Topix trade at an average of 23 times forecast earnings, the highest among the world’s five biggest stock markets.