Nikkei 225 Closes Above 20,000 as Jump in Capex Buoys Sentiment

Japanese shares rose for the first time in three days, with the Nikkei 225 Stock Average closing above 20,000 for the first time since August, after data showed capital spending jumped more than expected as company profits increased in the third quarter.

The Nikkei 225 added 1.3 percent to 20,012.40, its highest close since Aug. 20. The broader Topix index gained 1.4 percent to 1,601.95, as all but one of the gauge’s 33 industry groups advanced. The yen added 0.1 percent to 122.98 per dollar after weakening for two days.

Government data showed capital spending jumped 11.2 percent in the third quarter from a year earlier, more than economist forecasts for 2.2 percent growth. The gain raises the possibility of an upward revision to gross domestic product after news last month that Japan had slipped into a recession. Company profits increased 9 percent after jumping almost 24 percent in the previous three months.

The Topix on Monday capped a second straight monthly gain. Japanese stocks have weathered a cooling Chinese economy and the prospect of monetary tightening by the Federal Reserve to rank among the best performers in developed countries this year. The Topix rallied 14 percent in 2015 through Tuesday.

E-mini futures on the Standard & Poor’s 500 Index added 0.6 percent after the underlying gauge lost 0.5 percent on Monday as investors prepared for policy decisions from central banks.

Traders see a 74 percent chance the Fed will raise U.S. interest rates in December. By contrast, economists surveyed by Bloomberg unanimously predict the European Central Bank will expand stimulus on Thursday.

Source: Bloomberg

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Nikkei 225 Tops 20,000 First Time Since 2000 on Fast Retailing

PT BEST PROFIT FUTURESJapan’s Nikkei 225 Stock Average rose above 20,000 for the first time in 15 years, fueled by Fast Retailing Co. after the Uniqlo clothes seller boosted its profit forecast.

The Nikkei 225 added 0.3 percent to 20,006 as of 9:08 a.m. in Tokyo, headed for the highest close since April 14, 2000. Fast Retailing rallied 3.1 percent, the biggest boost to the gauge, after raising its net-income forecast by 20 percent. The Topix index advanced 1,596.19 percent to 1,596.41, headed for a weekly gain of 2.1 percent. The yen traded at 120.61 per dollar after yesterday weakening 0.4 percent as strong U.S. employment figures boosted the greenback.

Fast Retailing raised its forecast for annual profit by 20 percent to 120 billion yen ($ 998 million), citing strong domestic and international sales. Nomura boosted its outlook for the retailer, saying its shares should reach 55,000 yen in 12 months. They closed yesterday at 48,500 yen.

The yen fell against the dollar after a report showed fewer Americans filed jobless claims in the past four weeks than at any time in almost 15 years. The data came a day after minutes of the Federal Reserve’s last meeting suggested the first interest-rate increase since 2006 is still on the table for this year.

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Source : Bloomberg

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