Japan’s Nikkei Stock Average Ends Higher as Investors Assess Positive US Data (UPDATE 1)

Reuters

12:38 JST, November 25, 2024 (updated at 16:40 JST)

TOKYO, Nov 25 (Reuters) – Japan’s Nikkei share average ended higher on Monday as local investors found comfort from recent U.S. data that signaled 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 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 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 jumped 3.5% to give the biggest boost to the Nikkei index.

Shares of chip-making equipment maker Tokyo Electron gained 3.9% and tech start-up investor SoftBank Group added 3.3%.

Keisei Electric Railway and Keikyu 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 slipped 2.3% to weigh the most in the Nikkei. Phone company KDDI 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.