Tokyo stocks close sharply higher on solid Chinese data, improved outlook for global economy

Source: Xinhua| 2019-12-02 18:41:27|Editor: xuxin
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TOKYO, Dec. 2 (Xinhua) -- Tokyo stocks closed sharply higher Monday, with the benchmark Nikkei stock index ending at a near 14-month high as upbeat data released in China lifted the market mood and helped ease concerns about the outlook for the global economy.

The 225-issue Nikkei Stock Average climbed 235.59 points, or 1.01 percent, from Friday to close the day at 23,529.50.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, jumped 15.13 points, or 0.89 percent, to finish at 1,714.49.

Local brokers here said that recent data showing China's manufacturing sector had expanded at a pace ahead of median market forecasts set a positive tone in early trade here Monday.

In addition, separate data showing that factory activity in China had expanded to mark the fastest growth in almost three years, further contributed to an upbeat mood, they added.

"The rebound in Chinese manufacturing data is supporting Japanese shares," Hideyuki Ishiguro, senior strategist at Daiwa Securities in Tokyo, was quoted as saying.

Along with reports of solid online Black Friday sales in the United States and coupled with data here showing that companies increased corporate capital spending in the July-September period, marking the 12th successive quarter of expansion, further raised hopes for the outlook for the global economy, market strategists said.

"Expectations for economic recovery in Japan, the United States and China lifted stock markets," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

The yen's retreat against the U.S. dollar, dropping to a six-month low at one point, also prompted investors to chase the market higher, as a weaker yen versus its counterparts supports Japanese firms exposed to overseas markets by augmenting profits when repatriated and making their products more competitive in foreign markets, investment strategists here noted.

China-linked issues gained traction Monday, with industrial robot manufacturer Yaskawa Electric climbing 1.1 percent, while Kubota jumped 2.2 percent by the close.

Electrical equipment maker GS Yuasa Corp. closed more than 4 percent higher, while Hitachi Zosen Corp. added 3.6 percent. Taiyo Yuden, meanwhile, jumped 3.8 percent by the close.

Some domestic iPhone supplies found favor on expectations for a spike during year end shopping, with Sony adding 1.4 percent, while Murata Manufacturing closed the day 2.9 percent higher.

Game and console maker Nintendo was also among notable gainers, advancing 2.1 percent on expectations for increased sales of its Switch game console and software prior to the end of the year.

By the close of play, marine transportation, wholesale, and iron and steel-related issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,515 to 542 on the First Section, with 100 ending the day unchanged.

On the main section on Monday, 946.96 million shares changed hands, dropping from Friday's volume of 994.50 million shares.

The turnover on the first trading day of the week came to 1,694.2 billion yen (15.44 billion U.S. dollars).

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