Japanese stocks rise after three days

Japanese stocks advanced for the first time in three days after the government sold yen, boosting prospects for exporters earnings.Canon Inc. (7751), which gets 80 percent of its sales abroad, climbed 2.3 percent. Hitachi Ltd. (6501) and Mitsubishi Heavy Industries Ltd. (7011) rose at least 2.2 percent after a person familiar with the matter said they’re in talks to merge some businesses, following a Nikkei newspaper report on the possible deal. Japan Steel Works Ltd. (5631), a maker of machinery for castings, leapt 5.3 percent after first-quarter profit rose.The Nikkei 225 Stock Average gained 1 percent to 9,733.10 in Tokyo, after falling as much as 0.2 percent.The broader Topix index climbed 0.9 percent to 833.88. The gains were maintained on optimism the yen may weaken further should the Bank of Japan follow its Swiss counterpart and take further measures.“The stock market is reacting to the yen’s depreciation,” said Naoki Fujiwara, who helps oversee $6 billion at Shinkin Asset Management Co. in Tokyo. The yen may continue to weaken “if the Bank of Japan also takes some easing measures along with other countries.”Japan’s central bank may follow the unilateral action to sell the yen with monetary stimulus, Finance Minister Yoshihiko Noda said in Tokyo today, adding that he hoped the BOJ would take appropriate action. The bank separately brought forward by a day the end of its scheduled policy meeting.