Japan's Nikkei rallies to the best month in two years

JAPAN’S Nikkei share average rose on Thursday (Nov 30) to book its best month in two years, as bets that US interest rates have peaked buoyed equities globally.

Japanese stocks also got a boost from a robust corporate earnings season earlier this month, as a weaker yen buoyed exporters and retailers successfully passed on higher costs to consumers.

The Nikkei ended the day up 0.5 per cent at 33,486.89, rallying in the afternoon session after spending most of the morning slightly lower.

That extended the benchmark index’s gain for the month to 8.52 per cent, the most since November 2020.

The broader Topix added 0.44 per cent on the day, for a monthly gain of 5.38 per cent.

“Markets are now firmly embracing the idea that the Federal Reserve is done hiking, and its next move will be a cut,” said Tony Sycamore, an analyst at IG markets.

“With the Nikkei having had the opportunity to consolidate gains and rebuild energy, the backdrop looks supportive for it to retest and break above resistance at 34,000 in the final weeks of the year.”

The Nikkei reached a 33-year peak of 33,853.46 on Nov 20.

On Thursday, chip-testing equipment maker Advantest was both the Nikkei’s biggest percentage gainer and top points gainer, rallying 4.32 per cent. Overnight, the Philadelphia SE semiconductor index rose 0.94 per cent, compared with a very mixed performance by Wall Street’s main three indexes.

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Shippers were the top performers among the Tokyo Stock Exchange’s 33 industry groups, up 2.01 per cent.

Securities firms were another standout, gaining 1.46 per cent. Drugmakers rounded out the top three, with a 1.21 per cent advance.

At the other end, pulp and paper companies led losses with a 0.56 per cent drop.

On the Nikkei, cosmetics maker Shiseido was by far the biggest percentage decliner, slumping 5.07 per cent.

Of the benchmark’s 225 components, 133 rose versus 87 that fell, while five were flat. REUTERS