Tokyo stocks up on Japan business spending boost

 01 Jun 2017 - 12:06

Tokyo stocks up on Japan business spending boost

AFP

Tokyo: Tokyo stocks snapped a four-day losing streak Thursday after a survey showed Japanese firms boosted capital spending in the first quarter, the latest indication the economy is picking up.

The benchmark Nikkei 225 index jumped 1.07 percent, or 209.46 points, to 19,860.03, while the Topix index of all first-section shares gained 1.13 percent, or 17.77 points, to 1,586.14.

Shortly before the opening bell, data showed that capital spending by Japanese firms rose 4.5 percent on-year during the three months to March.

The figures came a day after separate numbers showed factory output in April climbed at its fastest pace in six years.

Tokyo's rebound followed a drop on Wall Street where an underwhelming Federal Reserve report dampened investor spirits.

The Fed's "beige book" said that while most regions of the United States continue to see modest to moderate growth, optimism about the economic outlook has waned, partly due to concerns over government policies.

"There are good stories and bad stories out there for investors, but the market is largely welcoming the upbeat business investment data," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told AFP.

Toyota rose 0.96 percent to 5,989 yen as rival automaker Nissan gained 0.70 percent to 1,069 yen.

Canon jumped 3.25 percent to 3,903 yen after it announced plans for a share buyback.

Energy firms fell following heavy losses in oil prices Wednesday, with Japan Petroleum down 0.62 percent at 2,216 yen and Inpex falling 0.93 percent to 1,009 yen.

The dollar strengthened to 110.96 yen from 110.75 yen in New York.