Technology and Banking Stocks Drive Nikkei 225 Rebound, Capital Spending Accelerates In Third Quarter

Akira Ito
02 Dec, 2024
Tokyo

Stock market indexes in Japan reversed morning losses to close higher after banks and tech stocks advanced. 

The Nikkei 225 stock average gained 0.8%, and the broader Topix index increased 1.3%.

Stocks struggled in early trading but managed to recover after capital spending at large Japanese corporations rose in the third quarter, signaling resilience in corporate confidence and reinforcing expectations that the Bank of Japan will continue to raise rates. 

Capital spending in the third quarter increased 8.1% from 7.4% in the second quarter, data from the Ministry of Finance showed. 

Capital spending rose for the 14th consecutive month, driven by a surge in general-purpose machinery of nearly 62%, petroleum and coal products by 56.5%, and transport and postal activities by 32.7%. 

The final au Jibun Bank Japan manufacturing purchasing managers' index eased to 49.0 in November, matching the preliminary estimate released, and dropped from 49.2 in October.  

On the economic front, investors are looking forward to rate decisions by the Bank of Japan in two weeks, and hopes are rising that policymakers will raise rates by at least 25 basis points. 

The Japanese yen edged down to 150.32 against the U.S. dollar after trading below 150 in Friday's session. 

 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.8% to 38,513.02, and the broader Topix index advanced 1.3% to 2,714.72. 

Advantest Corp. increased 2.2% to ¥8,421.0, Tokyo Electron gained 1.4% to ¥23,640.0, and Lasertec decreased 0.8% to ¥16,305.0. 

Mitsubishi UFJ Financial advanced 1.9% to ¥1,826.50, Sumitomo Mitsui Financial rose 3.7% to ¥3,823.0, and Mizuho Financial gained 2.5% to ¥3,879.0. 

Fast Retailing dropped 1.4% to ¥50,430.0, and the company denied that it is sourcing cotton from the Xinjiang region of China, which has been accused of using forced labor and jailing citizens in recent years.