Japan's Nikkei ends higher as investors assess positive US data

Keisei Electric Railway

25/11/2024 07:35

(Updates at 0630 GMT)
       TOKYO, Nov 25 (Reuters) - Japan's Nikkei share average
ended higher on Monday as local investors found comfort from
recent U.S. data that signalled strong business activity in the
world's largest economy.  
    A measure of U.S. business activity raced to a 31-month high
in November, boosted by hopes for lower interest rates and more
business-friendly policies from President-elect Donald Trump's
administration next year.
    The Nikkei  .N225  rose 1.3% to close at 38,780.14 on
Monday. The index touched an intraday high of 39,053.64,
crossing the 39,000 level for the first time since Nov. 15.
    The broader Topix  .TOPX  gained 0.71% to 2,715.6.
    "Overseas factors are important for Japanese stocks now as
we have not seen much market-moving catalysts within Japan,"
said Fumio Matsumoto, chief strategist at Okasan Securities.
    Wall Street closed higher on Friday, with all three major
indexes posting weekly gains, following the release of the
business data.
    "But the gains of the Nikkei were capped on concerns about
the possible impact of the Republican President-elect Donald
Trump's policy on Japanese exporters," Matsumoto said.
    Uniqlo owner Fast Retailing  9983.T  jumped 3.5% to give the
biggest boost to the Nikkei index.
    Shares of chip-making equipment maker Tokyo Electron
 8035.T  gained 3.9% and tech start-up investor SoftBank Group
 9984.T  added 3.3%.
    Keisei Electric Railway  9009.T  and Keikyu  9006.T  surged
13.83% and 11.07%, respectively, after local media reported an
activist investor group was increasing its stakes in both
railway operators.
    Chip-testing equipment maker Advantest  6857.T  slipped 2.3%
to weigh the most in the Nikkei. Phone company KDDI  9433.T 
fell 1.35%.
    Of the over 1,600 stocks on the Tokyo Stock Exchange's prime
market, 45% rose, 50% fell and 4% were flat.
    Of the 225 stocks in the Nikkei, 143 rose, 79 fell, and
three were trading flat.  
        

 (Reporting by Junko Fujita; Editing by Sumana Nandy and Sherry
Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))