TOKYO, Aug 27 — Japanese shares rose after the Standard & Poor’s 500 Index closed above 2,000 for the first time as US durable goods and consumer confidence data boosted optimism about the world’s largest economy.

Drugmaker Otsuka Holdings Co jumped 4.6 per cent after its rating was raised to buy at Nomura Holdings Inc. Kawasaki Kisen Kaisha Ltd, Japan’s third-biggest shipper, surged the most on the Nikkei 225 Stock Average after a report it will target return on equity of 10 per cent in five years. Railway shares fell the most among the 33 Topix industry groups after leading losses yesterday.

The Topix added 0.3 per cent to 1,288.62 as of 9.32am in Tokyo, with about two shares rising for each that dropped. The Nikkei 225 Stock Average gained 0.3 per cent to 15,571.72. The yen slid 0.1 per cent to 104.13 per dollar, headed for an eighth day of declines.

“If the US economy recovers, then we’ll begin to see expectations for Japanese corporate earnings to rise on increased export volumes and a weaker yen,” said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. Still, “with buying energy low, we may see profit taking at the top of the market.”

The value of stocks traded on the first section of the Tokyo Stock Exchange was ¥1.5 trillion (US$14.7 billion) yesterday, compared with this year’s daily average of about ¥2 trillion. The measure is 1 per cent away from erasing this year’s loss after climbing for the previous two weeks.

Durable goods

Futures on the S&P 500 were little changed after the underlying equity measure rose 0.1 per cent yesterday. Data showed orders for US durable goods jumped 23 per cent in July, the biggest-ever increase, as bookings surged for commercial aircraft. The Conference Board’s consumer confidence index rose to 92.4 in August, the highest since October 2007, from a revised 90.3 a month earlier, the private research group said.

Russian President Vladimir Putin said talks with his Ukrainian counterpart over separatist fighting that’s killed more than 2,000 people were “positive” as the parties began discussions for a political resolution. Ukrainian President Petro Poroshenko said on Twitter that Russia, Belarus and Kazakhstan backed a Ukrainian peace strategy to stem battles between his army and pro-Russian insurgents. — Bloomberg