4:30 PM Tokyo – Nikkei average in Tokyo rose after three-days of decline. The manufacturing sector continued to expand in November and capital spending surged 11.2%. Nissan lifts its stake in Renault to 25%.
Nikkei average in Tokyo closed higher 265 points and crossed psychologically important 20,000 mark for the first time since August 20.
On the economy front, the capital spending in the third-quarter surged 11.2% compared to 5.6% in the second-quarter, the Ministry of Finance said.
The Markit/Nikkei Japan Final Manufacturing Purchasing Managers Index (PMI) was 52.6 in November, higher than the 52.4 reading in the previous month.
The index stayed above 50, the dividing line that separated expansion from contraction, for the seventh straight month.
Askul sales in November soared 13% and AIN Holdings profit jumped 30.5% and ITO EN profit soared 30.3%.
Mitsubishi Tanabe Pharma plans to invest 200 billion yen or $1.61 billion in the next five-years to expand drug sales in the U.S. market.
Nissan intends to lift its stake in Renault SA to 25% from the current 15% stake.
The Nikkei 225 Stock Average soared 264.93 or 1.3% to 20,012.40 and the broader Topix index jumped 21.70 to 1,601.95.
The yen weakened to 123.12 against a dollar.
Stocks in Review
slipped 0.8% to 5,290 yen after the office products retailer said non-consolidated net sales in November soared 13.3% to 25.60 billion yen and sales in Lohaco business surged 78.9% to 3.02 billion yen and recorded a new high in monthly net sales.
AIN Holdings Inc
gained 1.2% to 5,860 yen after the pharmacies and drugstores operator reported net sales in the first-half ending in October soared 21.2% from a year ago to 106.92 billion yen.
Net income in the quarter surged 30.5% to 3.30 billion yen compared to 2.53 billion yen and earnings per share increased to 103.93 yen from 79.64 yen in the same period a year ago.
For the year, the company forecasted net sales to jump 16.2% to 218.28 billion yen and net income to advance 16.7% to 7.23 billion yen.
ITO EN, LTD
rose 0.2% to 2,820 yen after the tea and drinks maker said net sales in the first-half ending in October jumped 8.1% from a year ago to 252.88 billion yen.
Net income in the quarter soared 30.3% to 5.71 billion yen compared to 4.38 billion yen and diluted earnings per share advanced to 44.97 yen from 34.18 yen in the same period a year ago.
The tea and drinks maker estimated net sales for the year to increase 8% to 465 billion yen and net income to soar 20.3% to 8.77 billion yen.
Mitsubishi Tanabe Pharma Corp
slumped 2.2% to 2,103 yen after the pharmaceutical products maker agreed to invest more than 200 billion yen or $1.61 billion in the next five-years to expand new-drug sales in the U.S.
Nissan Motor Co Ltd
dropped 2.4% to 1,283.50 yen after the automaker intends to lift its stake to 25% in the France-based Renault SA from the current 15% stake.
At present, Renault holds 43.4% stake in the Japanese automobile company.