Nikkei rises to fresh 7-year high on strong capex data, weak yen, low crude prices

domingo 30 de noviembre de 2014 22:13 GYT

* Falling crude oil benefits Japan - analyst
    * Strong capex data lifts machinery shares
    * Weak gold prices hurts Sumitomo Metal Mining
    * Exporters benefit after dollar hits new 7-year high on yen

    By Ayai Tomisawa
    TOKYO, Dec 1 (Reuters) - Japan's Nikkei share average rose
to a fresh seven-year high on Monday as strong corporate
spending lifted sentiment, with airline shares extending gains
as oil prices tumbled further.
    Exporters were also in demand after the dollar rose to a new
seven-year high against the yen. 
    The Nikkei rose 0.9 percent to 17,615.14 points by
mid-morning after climbing as high as 17,649.02, the highest
since July 2007.
    The 5.5 percent year-on-year rise in capital expenditure
over the third quarter reported on Monday is expected to ease
concerns about a recovery from a sales tax increase earlier this
    Such machinery shares benefited from the strong capital
spending figures, with Fanuc Corp rising 1.9 percent
and Keyence Corp jumping 2.3 percent.
    Falling crude oil prices continued to help ANA Holdings Inc
, which soared 5.3 percent to 307.6 yen, the highest
since Feb. 2011. Japan Airlines Co climbed 7.2 percent
to 3,740 yen, the highest since the airline spilt its stock on
Oct. 1.
    Tire makers Bridgestone Corp rose 1.1 percent and
Yokohama Rubber Co surged 2.1 percent.
    "Falling crude prices is serving as a tailwind to a
developed country like Japan," said Norihiro Fujito, a senior
investment strategist at Mitsubishi UFJ Morgan Stanley
Securities, adding that the drop in prices would help
consumption as well.
    "It's a Thanksgiving gift to the Japanese market," he said.
     U.S. crude fell more than $2 to a five-year low in Asian
trade, while Brent futures touched a fresh four-year
    Also lifting risk sentiment was the weak yen after the
dollar hit 119.02 on the EBS trading platform, the highest since
August 2007. Toyota Motor Corp rose 1.6 percent and
Honda Motor Co advanced 1.1 percent.
    Bucking the strength was Sumitomo Metal Mining Co,
which fell 1.8 percent as gold prices slid 2 percent after Swiss
voters overwhelmingly rejected a proposal to boost central bank
gold reserves. 
    The broader Topix rose 1.1 percent to 1,425.39, and
the JPX-Nikkei Index 400 gained 1.0 percent to

 (Editing by Kim Coghill)