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By Bloomberg

Japanese shares advanced for a fifth day to extend a six-year high on the Topix index as exporters rose with the yen trading near its weakest against the dollar since 2008.

Sony Corp. climbed 1.1 percent as Japan's currency extended its drop past 107 per dollar and Walt Disney Co. and 21st Century Fox Inc. were said to be in talks to provide programming for the Japanese company's planned Internet TV service. Astellas Pharma Inc. jumped 3.2 percent, extending gains after confirming yesterday that the U.S. government approved a new indication for the use of its Xtandi cancer drug. A gauge tracking oil and coal producers sank the most among the 33 Topix industry groups.

The Topix rose 0.2 percent to 1,313.72 at the close of trading in Tokyo, extending its highest close since July 2008. The measure climbed 1.6 percent this week. The Nikkei 225 Stock Average added 0.3 percent to 15,948.29 today. The yen fell to as low as 107.39 per dollar, its weakest since September 2008.

"The weakening of the yen is set to continue for the time being, given the strength of the U.S. economy pushing up the dollar and also the expectations for further easing in Japan," said Tetsuo Seshimo, a portfolio manager at Saison Asset Management Co., which oversees about $900 million. "Foreign investors see a weaker yen as equalling higher stocks, so we're seeing a spiral in which shares rise as the yen drops."

The Topix rebounded 16 percent from an April 14 low amid optimism about the global economy and speculation Japan's $1.2 trillion Government Pension Investment Fund will buy more domestic shares. The equity gauge traded at 1.3 times book value today, compared with 2.7 for the Standard & Poor's 500 Index yesterday, according to data compiled by Bloomberg.

Technical Indicators

The 25-day Toraku Index, which compares the numbers of advancing and declining stocks on the Topix, stood at 123 yesterday, above the 120 level some traders say indicates that stocks are poised to fall. The Topix's Relative Strength Index was at 66 yesterday, approaching the 70 mark that some investors see as a signal shares will retreat.

"Japanese shares have continued to rise, and there's a sense of overheating in the technicals," said Juichi Wako, a Tokyo-based equity strategist at Nomura Holdings Inc., the nation's largest brokerage.

Futures on the S&P 500 were little changed today. The underlying equity gauge climbed 0.1 percent yesterday, closing higher for a second day, as crude rebounded from an eight-month low amid an escalation of geopolitical tensions.

President Barack Obama pledged more air strikes on Islamic State extremists and said the U.S. is joining the European Union in imposing more sanctions on Russia for its continued support of separatists in Ukraine.

Sony Advances

Sony gained 1.1 percent to 2,127 yen. Disney and Fox would join Viacom Inc., which said yesterday it will provide 22 television networks to Sony, the first time the U.S. media company has made its shows available for a Web-based service. Sony's shares also rose after researcher NPD Group Inc. said the PlayStation led shipments of gaming consoles in the U.S. for an eighth month.

Astellas advanced 3.2 percent to 1,594 yen. Astellas and Medivation Inc. confirmed the U.S. regulator's approval for the use of the drug to treat patients with metastatic castration- resistant prostate cancer that will trigger $90 million in payments to Medivation through a pact with Astellas.

Konami Corp. added 1.3 percent to 2,285 yen after Morgan Stanley MUFG Securities Co. raised its recommendation on shares of the computer-games developer to overweight.

Among shares that fell, JX Holdings Inc. sank 1.3 percent to 526 yen, while Inpex Corp. slipped 0.4 percent to 1,477 yen.