By Makiko Kitamura and Masaki Kondo
July 7 (Bloomberg) -- Japanese stocks rose, snapping the Nikkei 225 Stock Average's longest losing streak in 54 years, as investors bet shares had become cheap relative to earnings.
Orix Corp., Japan's largest non-bank financial company, rose the most in eight weeks, while Mizuho Financial Group Inc. jumped the most in a month. Canon Inc., which gets a third of its sales from the Americas, climbed after the yen depreciated to the weakest against the dollar in almost two weeks. Tokyu Land Corp. led a gauge of developers to its biggest gain since June 16.
The Nikkei 225 added 122.15, or 0.9 percent, to close at 13,360.04 in Tokyo, breaking a 12-day slide, the longest since 1954. The broader Topix index rose 14.92, or 1.2 percent, to 1,312.80. Almost two stocks advanced for each that slumped.
``Japanese stocks have been sold excessively, and they have become cheap relative to their asset values or earnings,'' said Yoshihiro Ito, senior strategist at Okasan Asset Management Co. in Tokyo, which oversees the equivalent of $9.3 billion.
As of July 4, shares on the Nikkei traded at 16.5 times earnings for the past business year, the lowest since May 13 and below the 20.8 ratio for China's CSI 300 Index, based on Bloomberg data. The Nikkei fell 8.4 percent in the 12 days through July 4, reaching the lowest since April 16.
To contact the reporters on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
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