PRIVATE equity firm TPG Capital is willing to invest up to €1 billion in Japan’s Olympus Corp in a joint deal with Sony Corp or another suitor circling the scandal-hit firm, a source said.

Japanese stocks jumped by the most in more than four years after Federal Reserve Chairman Ben S Bernanke hinted the central bank has almost finished raising US interest rates.

Japanese stocks fell after oil prices surged to a record on conflict between Israel and Lebanon, and downgrades of US firms pointed to slowing growth in the nation’s largest overseas market.

Japanese stocks dropped for a third day, led by technology-related companies such as Canon Inc, after brokerages cut earnings estimates for Dell Inc and Apple Computer Inc.

The dollar fell to a record low against the euro in New York on speculation that higher interest rates in Europe will lure investors away from US assets.