TOKYO -- Japanese shares rose, with the Nikkei 225 Stock Average capping the longest monthly winning streak since 2006, after Prime Minister Shinzo Abe nominated Asian Development Bank President Haruhiko Kuroda to lead the Bank of Japan.
Sumitomo Mitsui Financial Group Inc. paced gains among banks amid speculation the central bank will deliver more easing. Komatsu Ltd., Japan’s largest construction machinery maker, climbed 3.7 % on a report operating profit will exceed expectations and as the nation’s industrial output gained a second month. Toyota Motor Corp., the world’s biggest carmaker, surged 3.5 % after U.S. economic data beat estimates. Japan Exchange Group Inc. slumped 11 % in Tokyo after being included on the Topix Index.
The Nikkei 225 gained 2.7 % to close at 11,559.36 in Tokyo, with volume 17 % below the 30-day average. The equity gauge rose 3.8 % this month, capping a seven-month advance. The broader Topix rose 2.3 % to 975.66.
“We are done with who will be the next BOJ governor and from here the focus will be on what Kuroda will actually do,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of about 6 trillion yen ($65 billion). “Currency and stock markets are holding out hopes for bold monetary easing.”
The Topix surged 35 % from Nov. 14 on optimism Abe and the central bank will tackle deflation. The measure is trading at 1.1 times book value, compared with 2.1 for the Standard & Poor’s 500 Index and 1.5 for the Stoxx Europe 600 Index. (Bloomberg/msw)
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