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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Japanese Stocks Rise for First Time in Three Days as Capex Jumps

Japanese stocks rose for the first time in three days after data showed capital spending jumped more than expected as company profits increased in the third quarter.

The Topix index gained 1.2 percent to 1,598.82 at the trading break in Tokyo, as more than double the number of stocks rose as fell. Just one of the gauge’s 33 industry groups declined. The Nikkei 225 Stock Average added 1 percent to 19,946.55. The yen added 0.3 percent to 122.71 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.

Source: Bloomberg

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