Rally In Semiconductor Stocks Power Broader Advance In Japan Indexes

Stock market indexes in Tokyo advanced following gains in overnight trading on Wall Street. 

The Nikkei 225 stock average jumped 1.9%, and the broader Topix gained 1.4%, driven by a jump in semiconductor-related stocks. 

The rise in market indexes was fueled by the exemption granted to Japanese equipment makers in the latest trade restrictions announced by the Biden administration. 

The additional U.S. sanctions cover 24 types of semiconductor equipment and three types of design and testing software and expanded its restriction list to 140 companies covering the supply chain network. 

However, these restrictions on state-of-the-art technology that enable the manufacturing of artificial intelligence chips and technology excluded most Japanese products and equipment. 

The surprise rally in semiconductor stocks spread to the broader market and lifted benchmark indexes for the third day in a row. 

The Japanese yen traded at 150.88 against the U.S. dollar as investors reaffirmed bets that the Bank of Japan is more likely to raise rates at the end of its policy meeting in two weeks. 

Japan Stock Movers 

The Nikkei 225 stock average increased 1.9% to 39,248.86, and the broader Topix index advanced 1.4% to 2,753.58. 

Tokyo Electron increased 4.3% to ¥24,650.0, Advantest gained 3.9% to ¥8,750.0, and Lasetec jumped 4.3% to ¥17,005.0. 

Shipping companies were among the leading gainers in Tokyo. 

Mitsui O.S.K. gained 5.2% to ¥5,286.0, Kawasaki Kisen Kaisha added 4.5% to ¥2,109.50, and Nippon Yusen increased 3.8% to ¥5,020.0. 

Nippon Yusen said it completed the acquisition of 4.39 million shares for about ¥21.6 billion in November as part of its 35 million stock repurchase plan approved by the company's board. 

Rally In Semiconductor Stocks Power Broader Advance In Japan Indexes

Stock market indexes in Tokyo advanced following gains in overnight trading on Wall Street. 

The Nikkei 225 stock average jumped 1.9%, and the broader Topix gained 1.4%, driven by a jump in semiconductor-related stocks. 

The rise in market indexes was fueled by the exemption granted to Japanese equipment makers in the latest trade restrictions announced by the Biden administration. 

The additional U.S. sanctions cover 24 types of semiconductor equipment and three types of design and testing software and expanded its restriction list to 140 companies covering the supply chain network. 

However, these restrictions on state-of-the-art technology that enable the manufacturing of artificial intelligence chips and technology excluded most Japanese products and equipment. 

The surprise rally in semiconductor stocks spread to the broader market and lifted benchmark indexes for the third day in a row. 

The Japanese yen traded at 150.88 against the U.S. dollar as investors reaffirmed bets that the Bank of Japan is more likely to raise rates at the end of its policy meeting in two weeks. 

Japan Stock Movers 

The Nikkei 225 stock average increased 1.9% to 39,248.86, and the broader Topix index advanced 1.4% to 2,753.58. 

Tokyo Electron increased 4.3% to ¥24,650.0, Advantest gained 3.9% to ¥8,750.0, and Lasetec jumped 4.3% to ¥17,005.0. 

Shipping companies were among the leading gainers in Tokyo. 

Mitsui O.S.K. gained 5.2% to ¥5,286.0, Kawasaki Kisen Kaisha added 4.5% to ¥2,109.50, and Nippon Yusen increased 3.8% to ¥5,020.0. 

Nippon Yusen said it completed the acquisition of 4.39 million shares for about ¥21.6 billion in November as part of its 35 million stock repurchase plan approved by the company's board. 

China's Yuan Trades Near 17-Year Low, U.S. New Trade Restrictions Target Chinese Companies

Stock market indexes in China and Hong Kong struggled to hold gains of the previous session amid worries of growing trade tensions as the U.S. imposed additional restrictions. 

The Hang Seng index and the mainland-focused CSI 300 index edged up 0.2%, but market sentiment remained weak. 

The Biden administration announced new restrictions on shipments of 24 types of semiconductor equipment and three categories of design and processing software.

The expanded list includes 140 companies, nearly all are China based, including SMIC, Beijing Naura, Piotech, and ACM Research, and Huawei-linked companies. 

Moreover, exporters are bracing for additional sanctions next month from the new U.S. administration that could cover a wider range of products and industries. 

The blitz of fiscal stimulus announced by Chinese policymakers in September has failed to revive consumer sentiment and the property market transactions, as policy measures focused on supporting local government finances. 

The Chinese yuan traded near a 17-year low amid policy easing expectations and rising outflow of funds.

People's Bank of China's governor, Pan Gongsheng, said in a statement that the central bank is prepared to take countercyclical measures to support economic growth and provide ample liquidity to businesses to reduce financing costs. 

China Stock Movers 

The Hang Seng index increased 0.2% to 19,567.07, and the mainland-focused CSI 300 index fell 0.4% to 3,930.51. 

Semiconductor-related stocks, electric vehicle makers, and energy stocks were among the most actively traded stocks on Tuesday. 

SMIC fell 1.9% to HK $25.90, GigaDevice fell 1.5% to ¥83.72, and Hygon Information Technology dropped 1.3% to ¥125.37. 

BYD added 0.1% to HK $261.80, Li Auto declined 1.4% to HK $87.55, and Geely Automobile eased 0.3% to HK $14.24, and Xpeng fell 0.1% to HK $48.75. 

CNOOC rose 1.9% to HK $17.40, Sinochem International decreased 0.4% to ¥4.35, and Jilin Chemical gained 1% to ¥3.98. 

China Mobile decreased 0.6% to HK $72.25 after the telecom company made a HK $7.8 billion offer to acquire HKBN.

HKBN jumped 5.5% to HK $5.13. 

China's Yuan Trades Near 17-Year Low, Chipmakers Face More Selling

Stock market indexes in China and Hong Kong struggled to hold gains of the previous session amid worries of growing trade tensions as the U.S. imposed additional restrictions. 

The Hang Seng index and the mainland-focused CSI 300 index edged up 0.2%, but market sentiment remained weak. 

The Biden administration announced new restrictions on shipments of 24 types of semiconductor equipment and three categories of design and processing software. 

Moreover, exporters are bracing for additional sanctions next month from the new U.S. administration that could cover a wider range of products and industries. 

The blitz of fiscal stimulus announced by Chinese policymakers in September has failed to revive consumer sentiment and the property market transactions, as policy measures focused on supporting local government finances. 

The Chinese yuan traded near a 17-year low amid policy easing expectations and rising outflow of funds.

People's Bank of China's governor, Pan Gongsheng, said in a statement that the central bank is prepared to take countercyclical measures to support economic growth and provide ample liquidity to businesses to reduce financing costs. 

China Stock Movers 

The Hang Seng index increased 0.2% to 19,567.07, and the mainland-focused CSI 300 index fell 0.4% to 3,930.51. 

Semiconductor-related stocks, electric vehicle makers, and energy stocks were among the most actively traded stocks on Tuesday. 

SMIC fell 1.9% to HK $25.90, GigaDevice fell 1.5% to ¥83.72, and Hygon Information Technology dropped 1.3% to ¥125.37. 

BYD added 0.1% to HK $261.80, Li Auto declined 1.4% to HK $87.55, and Geely Automobile eased 0.3% to HK $14.24, and Xpeng fell 0.1% to HK $48.75. 

CNOOC rose 1.9% to HK $17.40, Sinochem International decreased 0.4% to ¥4.35, and Jilin Chemical gained 1% to ¥3.98. 

China Mobile decreased 0.6% to HK $72.25 after the telecom company made a HK $7.8 billion offer to acquire HKBN.

HKBN jumped 5.5% to HK $5.13. 

India Indexes Extend 3-Day Gains Ahead of RBI's Rate Decisions

Market indexes on Dalal Street traded higher ahead of the rate decisions later this week. 

The Sensex index increased 0.3% to 80,453.88, and the Nifty index advanced 0.2% to 24,326.65. 

The Reserve Bank of India is expected to hold rates steady at the end of its three-day policy meeting on December 6. 

The rate-setting committee is likely to keep rates unchanged for the eleventh consecutive meeting amid economic slowdown in the fiscal second quarter and elevated food inflation. 

However, most economists and market watchers held out for a rebound in activities in the second quarter amid strong rural demand, an ongoing festival season, and a pick-up in government spending following the general elections. 

In international markets, crude oil lacked direction but retained a downward bias ahead of the OPEC+ meeting this Thursday. 

Oil traders are hoping that the group will postpone a previously announced production increase as demand growth from key customers in Asia remains weak amid a supply glut in international markets. 

The U.S. dollar continued to advance against the euro, and France's minority government is likely to collapse as early as this week if three political groups fail to agree on budget measures of €60 billion. 

India Stock Movers 

Punjab & Sind Bank increased 2.1% to ₹50.96, and the company is planning to raise as much as ₹3,000 crore through the sale of 10-year infrastructure bonds. 

Torrent Power gained 4% to ₹1,653.0, and the company launched a ₹5,000 crore secondary offering for institutional investors with a floor price of ₹1,555.75 per share. 

Cipla Ltd. jumped 2% to ₹1,538.55, and Samina Hamied and Rumana Hamied, two promoters of the company, sold their combined 1.72% stake for ₹2,111 crore. 

BNP Paribas, Societe Generale, Norges Bank, Bank of America Securities, UBS, Copthall Mauritius, and sovereign funds of Abu Dhabi and Singapore purchased shares in open market transactions. 

Coal India increased 0.4% to ₹423.35 after the mining company said coal production in November increased 1.7% to 67.2 million tons. 

The company said coal production in the first six months to November rose 2.4% from a year ago to 471 million tons.

Coal India accounts for 80% of domestic coal production. 

Adani Power declined 0.5% to ₹546.20, and Bangladesh halved its electric power purchase from the company, citing lower winter demand amid ongoing disagreement over unpaid dues totaling several hundred million dollars. 

Varun Beverages decreased 1.6% to ₹624.90, and ITC fell 1.6% to ₹469.60 on a worry that the government may increase the Goods and Services Tax on cigarettes, tobacco, and carbonated beverages. 

A committee of ministers has recommended increasing GST to 35% from 28%, reported Business Standard. 

India Indexes Extend 3-Day Gains Ahead of RBI's Rate Decisions

Market indexes on Dalal Street traded higher ahead of the rate decisions later this week. 

The Sensex index increased 0.3% to 80,453.88, and the Nifty index advanced 0.2% to 24,326.65. 

The Reserve Bank of India is expected to hold rates steady at the end of its three-day policy meeting on December 6. 

The rate-setting committee is likely to keep rates unchanged for the eleventh consecutive meeting amid economic slowdown in the fiscal second quarter and elevated food inflation. 

However, most economists and market watchers held out for a rebound in activities in the second quarter amid strong rural demand, an ongoing festival season, and a pick-up in government spending following the general elections. 

In international markets, crude oil lacked direction but retained a downward bias ahead of the OPEC+ meeting this Thursday. 

Oil traders are hoping that the group will postpone a previously announced production increase as demand growth from key customers in Asia remains weak amid a supply glut in international markets. 

The U.S. dollar continued to advance against the euro, and France's minority government is likely to collapse as early as this week if three political groups fail to agree on budget measures of €60 billion. 

India Stock Movers 

Punjab & Sind Bank increased 2.1% to ₹50.96, and the company is planning to raise as much as ₹3,000 crore through the sale of 10-year infrastructure bonds. 

Torrent Power gained 4% to ₹1,653.0, and the company launched a ₹5,000 crore secondary offering for institutional investors with a floor price of ₹1,555.75 per share. 

Cipla Ltd. jumped 2% to ₹1,538.55, and Samina Hamied and Rumana Hamied, two promoters of the company, sold their combined 1.72% stake for ₹2,111 crore. 

BNP Paribas, Societe Generale, Norges Bank, Bank of America Securities, UBS, Copthall Mauritius, and sovereign funds of Abu Dhabi and Singapore purchased shares in open market transactions. 

Coal India increased 0.4% to ₹423.35 after the mining company said coal production in November increased 1.7% to 67.2 million tons. 

The company said coal production in the first six months to November rose 2.4% from a year ago to 471 million tons.

Coal India accounts for 80% of domestic coal production. 

Adani Power declined 0.5% to ₹546.20, and Bangladesh halved its electric power purchase from the company, citing lower winter demand amid ongoing disagreement over unpaid dues totaling several hundred million dollars. 

Varun Beverages decreased 1.6% to ₹624.90, and ITC fell 1.6% to ₹469.60 on a worry that the government may increase the Goods and Services Tax on cigarettes, tobacco, and carbonated beverages. 

A committee of ministers has recommended increasing GST to 35% from 28%, reported Business Standard. 

Wall Street Indexes Flirt Near Record Highs, China FDI Contracts

The S&P 500 index traded at a new intraday high in Monday's trading as investor enthusiasm supported the latest market rally. 

Benchmark indexes, the Dow and the S&P 500 indexes, traded at new intraday and closing highs on Friday, setting the expectations for the market rally to continue. 

Market sentiment was positive after a private survey showed that manufacturing activities improved in November, but the overall level of activities still remained in contraction. 

The ISM Manufacturing Purchasing Managers' Index increased to 48.4 in November from 46.5 in October, confirming that the sector is in contraction since October 2022 except in March of this year. 

The Dow Jones Industrial Average, which tracks mega cap stocks, briefly traded above 45,000 for the first time ever in Friday's trading. 

Last week, Wall Street indexes extended gains for the second week in a row, driven by post-election euphoria and positive economic data.

In a holiday-shortened trading week in the U.S., global investors digested a flood of economic news from Japan and Europe.

In the previous week, markets in Europe advanced, but political turmoil in France overshadowed trading sentiment, and weak economic growth kept pressure on the euro.

The prospect of a rate hike in Japan rose after Tokyo area inflation stayed above 2% and the yen strengthened sharply. 

In the week ahead on Wall Street, investors are looking forward to the release of the jobs and JOLT reports. 

Investors are estimating net new job growth to expand by 15,000 from 183,000 in October, the unemployment rate to hold steady at 4.1%, and wage growth to slow to 0.3% from 0.4%.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,048.63, the Nasdaq Composite rose 1.0% to 19,403.03, and the Russell 2000 index inched lower 0.1% to 2,431.83. 

The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes inched lower to 4.21%, and 30-year Treasury bonds decreased to 4.30%.

WTI crude oil increased $0.21 to $68.91 a barrel, and natural gas prices edged up 3 cents to $3.31 a thermal unit.

Gold increased by $22.23 to $2,635.65 an ounce, and silver fell by $0.18 to $30.42. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.69 to 106.47.

Stock Movers 

Stellantis NV dropped 7.3% to $12.24 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

The company said "different views" between the board and Tavares were the reason for his departure. 

Tavares played a key role in integrating France-based PSA and Italy's Fiat and had been at the helm for nearly four years; however, the company had begun the search for Tavares' replacement as early as September, according to Ticker.com's sources in Paris. 

John Elkann, chairman of the board and heir and representative of the Agnelli family, will lead a special committee to finalize the appointment of the next leader of the company. 

Intel soared 4% to $25.01 after the company said chief executive Pat Gelsinger has retired. 

The advanced semiconductor chipmaker said David Zinsner and Michelle Johnston Holthaus are interim co-CEOs. 

European Stocks and Yields In Focus Amid Rising Political Chaos

European markets struggled to advance in Monday's trading after a survey of manufacturing activities in the currency union highlighted ongoing stress. 

Benchmark indexes in Frankfurt, Milan, and London traded in a tight range, but in Paris edged lower amid rising political uncertainty. 

France Heads for Government Collapse

France's National Rally's leader, Jordan Bardella, said his party is ready to support a no-confidence motion against the minority government in the coming days in the event the current budgetary measures are not revised. 

France is likely to head for a political chaos as three leading political groups struggle to agree on the size of cost cuts and new tax measures to lower the budget deficit that is set to zoom to over 6% in 2024. 

Euro Area's Manufacturing Activities Struggle

On the economic front, the Euro Area's manufacturing sector activities deteriorated further in November, indicating deeper contraction in production, inventories, orders, and new orders. 

The HCOB Eurozone Manufacturing Purchasing Managers' Index eased to 45.2 in November from the revised 46.0 in October, S&P Global said in a note today. 

The manufacturing activities in Italy contracted further and fell to the lowest level in 2024 to 44.5 from 46.9, and activities in Spain expanded at a slower pace of 53.1 from 54.5 in October, respectively. 

UK Home Price Growth Accelerated In October

UK home price increases accelerated in November, and home prices are just 1% below record highs in the summer of 2022. 

The Nationwide House Price Index in the UK increased 3.7% from a year ago in November following a 2.4% rise in October, according to Nationwide Building Society. 

“The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels. 

The pickup in price growth is unlikely to have been driven by upcoming stamp duty changes, since the majority of mortgage applications commenced before the budget announcement," said Nationwide's Chief Economist, Robert Gardner.

Europe Indexes and Yields

The DAX index increased by 1.6% to 19,933.62; the CAC-40 index rose by 0.02% to 7,236.89; and the FTSE 100 index inched higher by 0.3% to 8,312.89.

The yield on 10-year German bonds edged lower to 2.04%, French bonds inched down to 2.86%, the UK gilts edged lower to 4.24%, and Italian bonds decreased to 3.22%.

The euro edged higher to $1.05; the British pound inched down to $1.26; and the U.S. dollar eased to 88.65 Swiss cents.

Brent crude decreased $0.68 to $71.69 a barrel, and the Dutch TTF natural gas rose by €0.54 to €48.45 per MWh. 

Europe Stock Movers

Delivery Hero SE plunged 11.4% to €34.26 after the German delivery company said its Spanish unit, Glovo, will switch to an employment model from a freelance model under pressure from the Spanish government. 

Stellantis NV dropped 11.2% to €11.44 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

Supreme PLC gained 4.8% to 175.0 pence after the consumer products company acquired Typhoo Tea from bankruptcy administration for £10.2 million in cash.

Technology and Banking  Stocks Drive Nikkei 225 Rebound

Technology and Banking  Stocks Drive Nikkei 225 Rebound, Capital Spending Accelerates In Third Quarter 

Stock market indexes in Japan reversed morning losses to close higher after banks and tech stocks advanced. 

The Nikkei 225 stock average gained 0.8%, and the broader Topix index increased 1.3%.

Stocks struggled in early trading but managed to recover after capital spending at large Japanese corporations rose in the third quarter, signaling resilience in corporate confidence and reinforcing expectations that the Bank of Japan will continue to raise rates. 

Capital spending in the third quarter increased 8.1% from 7.4% in the second quarter, data from the Ministry of Finance showed. 

Capital spending rose for the 14th consecutive month, driven by a surge in general-purpose machinery of nearly 62%, petroleum and coal products by 56.5%, and transport and postal activities by 32.7%. 

The final au Jibun Bank Japan manufacturing purchasing managers' index eased to 49.0 in November, matching the preliminary estimate released, and dropped from 49.2 in October.  

On the economic front, investors are looking forward to rate decisions by the Bank of Japan in two weeks, and hopes are rising that policymakers will raise rates by at least 25 basis points. 

The Japanese yen edged down to 150.32 against the U.S. dollar after trading below 150 in Friday's session. 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.8% to 38,513.02, and the broader Topix index advanced 1.3% to 2,714.72. 

Advantest Corp. increased 2.2% to ¥8,421.0, Tokyo Electron gained 1.4% to ¥23,640.0, and Lasertec decreased 0.8% to ¥16,305.0. 

Mitsubishi UFJ Financial advanced 1.9% to ¥1,826.50, Sumitomo Mitsui Financial rose 3.7% to ¥3,823.0, and Mizuho Financial gained 2.5% to ¥3,879.0. 

Fast Retailing dropped 1.4% to ¥50,430.0, and the company denied that it is sourcing cotton from the Xinjiang region of China, which has been accused of using forced labor and jailing citizens in recent years. 

China's New Energy Vehicle Sales Rise In November, Manufacturing Activities Expand and FDI Investment Plunge 

Market sentiment improved in China and Hong Kong after the latest manufacturing survey indicated a rebound in activities for the second month in a row.

The Hang Seng index increased 0.2% to 19,454.60, and the mainland-focused CSI 300 index advanced 0.6% to 3,938.12. 

The official and private surveys of the manufacturing sector showed a rebound in activities, boosted by new orders and domestic and foreign demand. 

The Caixin China General Manufacturing PMI increased to 51.3 in November from 50.3 in October, according to a report released by S&P Global. 

The index of activities rose at the fastest pace since June amid a surge in orders for electric vehicles, new home sales, and the sustained increase in online commerce. 

The National Bureau of Statistics said the Purchasing Managers' Index in November rose to 50.3 from 50.1 in October, marking the highest level since April.

The index improved for the third month in a row and stayed above the 50-mark for the second consecutive month. 

Also, the official non-manufacturing purchasing managers' index in November was unchanged from the previous month at 50.0, driven by a faster decline in new orders and employment from the previous month. 

A separate report from the Ministry of Commerce showed that foreign direct investment in the ten-month period to October fell 29.8% from a year ago to 693.21 billion yuan or $95.8 billion. 

After peaking at $189.1 billion in 2022, foreign direct investment fell to $163.3 billion, and is expected to dip to $127 billion 2024. 

China Stock Movers 

Electric vehicle makers advanced following the rise in vehicle sales in November. 

BYD jumped 2.5% to HK $260.40, and Geely Automobile Holding gained 4.4% to HK $14.48. 

BYD said sales increased to 504,003 new energy vehicles, an increase of 0.7% from 500,526 vehicles and a jump of 67.2% from 301,378 vehicles a year ago. 

Geely said sales in November increased 27% to 250,136 units, and new energy vehicle sales soared 88.3% to 122,453 from a year ago, respectively. 

Li Auto declined 2.5% to HK $88.65 after the company delivered few vehicles in November from the previous month. 

Vehicle sales dropped 5.3% to 48,740 units but rose 18.8% from the previous year to 41,030 units. 

Xpeng and Xiaomi also reported a rise in vehicle sales from a year ago and from the previous month in November. 

GDP Growth Hiccup Adds Another Headwind to India Indexes 

Stock market indexes in Mumbai lacked direction in early trading on Monday as investors reacted to the latest GDP growth update.

The Sensex index declined 0.04% to 79,791.24, and the Nifty index added 0.1% to 24,147.40. 

GDP expanded at the slowest pace in two years in the September quarter, according to data released by the National Statistics Office. 

India’s GDP growth in the September quarter moderated to 5.4% from 6.7% in the previous quarter and 8.1% in the period a year ago.

The growth rate was sharply lower than the 7% projected by the Reserve Bank of India.

Sluggish manufacturing sector growth of 2.2% and a weak rebound in the agriculture sector of 3.5% overshadowed the 7.1% increase in the service sector and 7.7% rise in the construction sector. 

The economy is expected to recover in the second half of the current fiscal year, largely driven by the rebound in government spending. 

Stock market indexes have already priced in the latest economic hiccup following the earnings weakness in the September quarter.

India Stock Movers 

Zomato Ltd. increased 1.6% to ₹284.20, and the company said it raised ₹8,500 crore in a secondary offering to institutional investors, its first fundraising since listing its stock in July 2021.

Aster DM Healthcare Ld. advanced 3.2% to ₹515.40, and the company agreed to merge with Bengaluru-based CARE Hospitals. 

The company's network of hospitals will expand to 38 in 27 cities after the merger. 

Cipla Ld. declined 0.8% to ₹1,521.95, and promoters of the company are expected to sell ₹2,000 crore worth of shares. 

Samina Hamied and Rumana Hamied, daughters of Mustafa Hamied, vice chairman of the board on the Cipla board, are planning to sell a 1.72% stake in the company.

Ashok Leyland decreased 2.4% to ₹226.44, and the company's finance subsidiary, Hinduja Leyland Finance, plans to raise between $300 million and $500 million by the end of the current financial year, CEO Sachin Pillai said. 

Signatureglobal India decreased 1.5% to ₹1,339.05, and the company said it plans to develop 1.6 crore square feet of real estate by the end of March 2026 and register annual revenue of ₹10,000. 

DLF Ltd. increased 0.6% to ₹827.05, and the company's joint venture firm DCCDL sold its IT park in Kolkata to Primarc Group and RDB Group for ₹637 crore. 

Wall Street Indexes Flirt Near Record Highs, China FDI Contracts

The S&P 500 index traded at a new intraday high in Monday's trading as investor enthusiasm supported the latest market rally. 

Benchmark indexes, the Dow and the S&P 500 indexes, traded at new intraday and closing highs on Friday, setting the expectations for the market rally to continue. 

Market sentiment was positive after a private survey showed that manufacturing activities improved in November, but the overall level of activities still remained in contraction. 

The ISM Manufacturing Purchasing Managers' Index increased to 48.4 in November from 46.5 in October, confirming that the sector is in contraction since October 2022 except in March of this year. 

The Dow Jones Industrial Average, which tracks mega cap stocks, briefly traded above 45,000 for the first time ever in Friday's trading. 

Last week, Wall Street indexes extended gains for the second week in a row, driven by post-election euphoria and positive economic data.

In a holiday-shortened trading week in the U.S., global investors digested a flood of economic news from Japan and Europe.

In the previous week, markets in Europe advanced, but political turmoil in France overshadowed trading sentiment, and weak economic growth kept pressure on the euro.

The prospect of a rate hike in Japan rose after Tokyo area inflation stayed above 2% and the yen strengthened sharply. 

In the week ahead on Wall Street, investors are looking forward to the release of the jobs and JOLT reports. 

Investors are estimating net new job growth to expand by 15,000 from 183,000 in October, the unemployment rate to hold steady at 4.1%, and wage growth to slow to 0.3% from 0.4%.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,048.63, the Nasdaq Composite rose 1.0% to 19,403.03, and the Russell 2000 index inched lower 0.1% to 2,431.83. 

The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes inched lower to 4.21%, and 30-year Treasury bonds decreased to 4.30%.

WTI crude oil increased $0.21 to $68.91 a barrel, and natural gas prices edged up 3 cents to $3.31 a thermal unit.

Gold increased by $22.23 to $2,635.65 an ounce, and silver fell by $0.18 to $30.42. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.69 to 106.47.

Stock Movers 

Stellantis NV dropped 7.3% to $12.24 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

The company said "different views" between the board and Tavares were the reason for his departure. 

Tavares played a key role in integrating France-based PSA and Italy's Fiat and had been at the helm for nearly four years; however, the company had begun the search for Tavares' replacement as early as September, according to Ticker.com's sources in Paris. 

John Elkann, chairman of the board and heir and representative of the Agnelli family, will lead a special committee to finalize the appointment of the next leader of the company. 

Intel soared 4% to $25.01 after the company said chief executive Pat Gelsinger has retired. 

The advanced semiconductor chipmaker said David Zinsner and Michelle Johnston Holthaus are interim co-CEOs. 

European Stocks and Yields In Focus Amid Rising Political Chaos

European markets struggled to advance in Monday's trading after a survey of manufacturing activities in the currency union highlighted ongoing stress. 

Benchmark indexes in Frankfurt, Milan, and London traded in a tight range, but in Paris edged lower amid rising political uncertainty. 

France Heads for Government Collapse

France's National Rally's leader, Jordan Bardella, said his party is ready to support a no-confidence motion against the minority government in the coming days in the event the current budgetary measures are not revised. 

France is likely to head for a political chaos as three leading political groups struggle to agree on the size of cost cuts and new tax measures to lower the budget deficit that is set to zoom to over 6% in 2024. 

Euro Area's Manufacturing Activities Struggle

On the economic front, the Euro Area's manufacturing sector activities deteriorated further in November, indicating deeper contraction in production, inventories, orders, and new orders. 

The HCOB Eurozone Manufacturing Purchasing Managers' Index eased to 45.2 in November from the revised 46.0 in October, S&P Global said in a note today. 

The manufacturing activities in Italy contracted further and fell to the lowest level in 2024 to 44.5 from 46.9, and activities in Spain expanded at a slower pace of 53.1 from 54.5 in October, respectively. 

UK Home Price Growth Accelerated In October

UK home price increases accelerated in November, and home prices are just 1% below record highs in the summer of 2022. 

The Nationwide House Price Index in the UK increased 3.7% from a year ago in November following a 2.4% rise in October, according to Nationwide Building Society. 

“The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels. 

The pickup in price growth is unlikely to have been driven by upcoming stamp duty changes, since the majority of mortgage applications commenced before the budget announcement," said Nationwide's Chief Economist, Robert Gardner.

Europe Indexes and Yields

The DAX index increased by 1.6% to 19,933.62; the CAC-40 index rose by 0.02% to 7,236.89; and the FTSE 100 index inched higher by 0.3% to 8,312.89.

The yield on 10-year German bonds edged lower to 2.04%, French bonds inched down to 2.86%, the UK gilts edged lower to 4.24%, and Italian bonds decreased to 3.22%.

The euro edged higher to $1.05; the British pound inched down to $1.26; and the U.S. dollar eased to 88.65 Swiss cents.

Brent crude decreased $0.68 to $71.69 a barrel, and the Dutch TTF natural gas rose by €0.54 to €48.45 per MWh. 

Europe Stock Movers

Delivery Hero SE plunged 11.4% to €34.26 after the German delivery company said its Spanish unit, Glovo, will switch to an employment model from a freelance model under pressure from the Spanish government. 

Stellantis NV dropped 11.2% to €11.44 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

Supreme PLC gained 4.8% to 175.0 pence after the consumer products company acquired Typhoo Tea from bankruptcy administration for £10.2 million in cash.

Technology and Banking  Stocks Drive Nikkei 225 Rebound

Technology and Banking  Stocks Drive Nikkei 225 Rebound, Capital Spending Accelerates In Third Quarter 

Stock market indexes in Japan reversed morning losses to close higher after banks and tech stocks advanced. 

The Nikkei 225 stock average gained 0.8%, and the broader Topix index increased 1.3%.

Stocks struggled in early trading but managed to recover after capital spending at large Japanese corporations rose in the third quarter, signaling resilience in corporate confidence and reinforcing expectations that the Bank of Japan will continue to raise rates. 

Capital spending in the third quarter increased 8.1% from 7.4% in the second quarter, data from the Ministry of Finance showed. 

Capital spending rose for the 14th consecutive month, driven by a surge in general-purpose machinery of nearly 62%, petroleum and coal products by 56.5%, and transport and postal activities by 32.7%. 

The final au Jibun Bank Japan manufacturing purchasing managers' index eased to 49.0 in November, matching the preliminary estimate released, and dropped from 49.2 in October.  

On the economic front, investors are looking forward to rate decisions by the Bank of Japan in two weeks, and hopes are rising that policymakers will raise rates by at least 25 basis points. 

The Japanese yen edged down to 150.32 against the U.S. dollar after trading below 150 in Friday's session. 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.8% to 38,513.02, and the broader Topix index advanced 1.3% to 2,714.72. 

Advantest Corp. increased 2.2% to ¥8,421.0, Tokyo Electron gained 1.4% to ¥23,640.0, and Lasertec decreased 0.8% to ¥16,305.0. 

Mitsubishi UFJ Financial advanced 1.9% to ¥1,826.50, Sumitomo Mitsui Financial rose 3.7% to ¥3,823.0, and Mizuho Financial gained 2.5% to ¥3,879.0. 

Fast Retailing dropped 1.4% to ¥50,430.0, and the company denied that it is sourcing cotton from the Xinjiang region of China, which has been accused of using forced labor and jailing citizens in recent years. 

China's New Energy Vehicle Sales Rise In November, Manufacturing Activities Expand and FDI Investment Plunge 

Market sentiment improved in China and Hong Kong after the latest manufacturing survey indicated a rebound in activities for the second month in a row.

The Hang Seng index increased 0.2% to 19,454.60, and the mainland-focused CSI 300 index advanced 0.6% to 3,938.12. 

The official and private surveys of the manufacturing sector showed a rebound in activities, boosted by new orders and domestic and foreign demand. 

The Caixin China General Manufacturing PMI increased to 51.3 in November from 50.3 in October, according to a report released by S&P Global. 

The index of activities rose at the fastest pace since June amid a surge in orders for electric vehicles, new home sales, and the sustained increase in online commerce. 

The National Bureau of Statistics said the Purchasing Managers' Index in November rose to 50.3 from 50.1 in October, marking the highest level since April.

The index improved for the third month in a row and stayed above the 50-mark for the second consecutive month. 

Also, the official non-manufacturing purchasing managers' index in November was unchanged from the previous month at 50.0, driven by a faster decline in new orders and employment from the previous month. 

A separate report from the Ministry of Commerce showed that foreign direct investment in the ten-month period to October fell 29.8% from a year ago to 693.21 billion yuan or $95.8 billion. 

After peaking at $189.1 billion in 2022, foreign direct investment fell to $163.3 billion, and is expected to dip to $127 billion 2024. 

China Stock Movers 

Electric vehicle makers advanced following the rise in vehicle sales in November. 

BYD jumped 2.5% to HK $260.40, and Geely Automobile Holding gained 4.4% to HK $14.48. 

BYD said sales increased to 504,003 new energy vehicles, an increase of 0.7% from 500,526 vehicles and a jump of 67.2% from 301,378 vehicles a year ago. 

Geely said sales in November increased 27% to 250,136 units, and new energy vehicle sales soared 88.3% to 122,453 from a year ago, respectively. 

Li Auto declined 2.5% to HK $88.65 after the company delivered few vehicles in November from the previous month. 

Vehicle sales dropped 5.3% to 48,740 units but rose 18.8% from the previous year to 41,030 units. 

Xpeng and Xiaomi also reported a rise in vehicle sales from a year ago and from the previous month in November. 

GDP Growth Hiccup Adds Another Headwind to India Indexes 

Stock market indexes in Mumbai lacked direction in early trading on Monday as investors reacted to the latest GDP growth update.

The Sensex index declined 0.04% to 79,791.24, and the Nifty index added 0.1% to 24,147.40. 

GDP expanded at the slowest pace in two years in the September quarter, according to data released by the National Statistics Office. 

India’s GDP growth in the September quarter moderated to 5.4% from 6.7% in the previous quarter and 8.1% in the period a year ago.

The growth rate was sharply lower than the 7% projected by the Reserve Bank of India.

Sluggish manufacturing sector growth of 2.2% and a weak rebound in the agriculture sector of 3.5% overshadowed the 7.1% increase in the service sector and 7.7% rise in the construction sector. 

The economy is expected to recover in the second half of the current fiscal year, largely driven by the rebound in government spending. 

Stock market indexes have already priced in the latest economic hiccup following the earnings weakness in the September quarter.

India Stock Movers 

Zomato Ltd. increased 1.6% to ₹284.20, and the company said it raised ₹8,500 crore in a secondary offering to institutional investors, its first fundraising since listing its stock in July 2021.

Aster DM Healthcare Ld. advanced 3.2% to ₹515.40, and the company agreed to merge with Bengaluru-based CARE Hospitals. 

The company's network of hospitals will expand to 38 in 27 cities after the merger. 

Cipla Ld. declined 0.8% to ₹1,521.95, and promoters of the company are expected to sell ₹2,000 crore worth of shares. 

Samina Hamied and Rumana Hamied, daughters of Mustafa Hamied, vice chairman of the board on the Cipla board, are planning to sell a 1.72% stake in the company.

Ashok Leyland decreased 2.4% to ₹226.44, and the company's finance subsidiary, Hinduja Leyland Finance, plans to raise between $300 million and $500 million by the end of the current financial year, CEO Sachin Pillai said. 

Signatureglobal India decreased 1.5% to ₹1,339.05, and the company said it plans to develop 1.6 crore square feet of real estate by the end of March 2026 and register annual revenue of ₹10,000. 

DLF Ltd. increased 0.6% to ₹827.05, and the company's joint venture firm DCCDL sold its IT park in Kolkata to Primarc Group and RDB Group for ₹637 crore. 

Positive Market Sentiment Ruled Wall Street After S&P 500 and Dow Hit New Highs On Friday

Stock market indexes on Wall Street traded around the flatline as investors looked to extend gains of the previous week and month. 

Benchmark indexes, the Dow and the S&P 500 indexes, traded at new intraday and closing highs on Friday, setting the expectations for the market rally to continue. 

The Dow Jones Industrial Average, which tracks mega cap stocks, briefly traded above 45,000 for the first time ever. 

Wall Street indexes extended gains for the second week in a row, driven by post-election euphoria and positive economic data.

In a holiday-shortened trading week in the U.S., global investors digested a flood of economic news from Japan and Europe.

Last week, markets in Europe advanced, but political turmoil in France overshadowed trading sentiment, and weak economic growth kept pressure on the euro.

The prospect of a rate hike in Japan rose after Tokyo area inflation stayed above 2% and the yen strengthened sharply. 

In the week ahead on Wall Street, investors are looking forward to the release of the jobs report and JOLT report in the U.S.

Investors are estimating net new job growth to expand by 15,000 from 183,000 in October, the unemployment rate to hold steady at 4.1%, and wage growth to slow to 0.3% from 0.4%.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 6,040.79, the Nasdaq Composite rose 0.6% to 19,332.73, and the Russell 2000 index inched higher 0.4% to 2,434.73. 

The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes inched lower to 4.21%, and 30-year Treasury bonds decreased to 4.30%.

WTI crude oil increased $0.21 to $68.91 a barrel, and natural gas prices edged up 3 cents to $3.31 a thermal unit.

Gold increased by $14.32 to $2,644.47 an ounce, and silver fell by $0.11 to $30.50. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.61 to 106.37.

Stock Movers 

Stellantis NV dropped 7.3% to $12.24 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

The company said "different views" between the board and Tavares were the reason for his departure. 

Tavares played a key role in integrating France-based PSA and Italy's Fiat and had been at the helm for nearly four years; however, the company had begun the search for Tavares' replacement as early as September, according to Ticker.com's sources in Paris. 

John Elkann, chairman of the board and heir and representative of the Agnelli family, will lead a special committee to finalize the appointment of the next leader of the company. 

Intel soared 4% to $25.01 after the company said chief executive Pat Gelsinger has retired. 

The advanced semiconductor chipmaker said David Zinsner and Michelle Johnston Holthaus are interim co-CEOs. 

Positive Market Sentiment Ruled Wall Street After S&P 500 and Dow Hit New Highs On Friday

Stock market indexes on Wall Street traded around the flatline as investors looked to extend gains of the previous week and month. 

Benchmark indexes, the Dow and the S&P 500 indexes, traded at new intraday and closing highs on Friday, setting the expectations for the market rally to continue. 

The Dow Jones Industrial Average, which tracks mega cap stocks, briefly traded above 45,000 for the first time ever. 

Wall Street indexes extended gains for the second week in a row, driven by post-election euphoria and positive economic data.

In a holiday-shortened trading week in the U.S., global investors digested a flood of economic news from Japan and Europe.

Last week, markets in Europe advanced, but political turmoil in France overshadowed trading sentiment, and weak economic growth kept pressure on the euro.

The prospect of a rate hike in Japan rose after Tokyo area inflation stayed above 2% and the yen strengthened sharply. 

In the week ahead on Wall Street, investors are looking forward to the release of the jobs report and JOLT report in the U.S.

Investors are estimating net new job growth to expand by 15,000 from 183,000 in October, the unemployment rate to hold steady at 4.1%, and wage growth to slow to 0.3% from 0.4%.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 6,040.79, the Nasdaq Composite rose 0.6% to 19,3332.73, and the Russell 2000 index inched higher 0.4% to 2,434.73. 

The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes inched lower to 4.21%, and 30-year Treasury bonds decreased to 4.30%.

WTI crude oil increased $0.21 to $68.91 a barrel, and natural gas prices edged up 3 cents to $3.31 a thermal unit.

Gold increased by $14.32 to $2,644.47 an ounce, and silver fell by $0.11 to $30.50. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.61 to 106.37.

Stock Movers 

Stellantis NV dropped 7.3% to $12.24 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

The company said "different views" between the board and Tavares were the reason for his departure. 

Tavares played a key role in integrating France-based PSA and Italy's Fiat and had been at the helm for nearly four years; however, the company had begun the search for Tavares' replacement as early as September, according to Ticker.com's sources in Paris. 

John Elkann, chairman of the board and heir and representative of the Agnelli family, will lead a special committee to finalize the appointment of the next leader of the company. 

Intel soared 4% to $25.01 after the company said chief executive Pat Gelsinger has retired. 

The advanced semiconductor chipmaker said David Zinsner and Michelle Johnston Holthaus are interim co-CEOs. 

NYC MON

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 6,022.50, the Nasdaq Composite rose 0.2% to 19,070.53, and the Russell 2000 index inched higher 0.1% to 2,429.37. 

The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes inched lower to 4.21%, and 30-year Treasury bonds decreased to 4.30%.

WTI crude oil increased $0.21 to $68.91 a barrel, and natural gas prices edged up 3 cents to $3.31 a thermal unit.

Gold increased by $14.32 to $2,644.47 an ounce, and silver fell by $0.11 to $30.50. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.61 to 106.37.

Stock Movers 

Euro Area Manufacturing Struggles, UK Home Price Index Increase Accelerates

European markets struggled to advance in Monday's trading after a survey of manufacturing activities in the currency union highlighted ongoing stress. 

Benchmark indexes in Frankfurt, Milan, and London traded in a tight range, but in Paris edged lower amid rising political uncertainty. 

France Heads for Government Collapse

France's National Rally's leader, Jordan Bardella, said his party is ready to support a no-confidence motion against the minority government in the coming days in the event the current budgetary measures are not revised. 

France is likely to head for a political chaos as three leading political groups struggle to agree on the size of cost cuts and new tax measures to lower the budget deficit that is set to zoom to over 6% in 2024. 

Euro Area's Manufacturing Activities Struggle

On the economic front, the Euro Area's manufacturing sector activities deteriorated further in November, indicating deeper contraction in production, inventories, orders, and new orders. 

The HCOB Eurozone Manufacturing Purchasing Managers' Index eased to 45.2 in November from the revised 46.0 in October, S&P Global said in a note today. 

The manufacturing activities in Italy contracted further and fell to the lowest level in 2024 to 44.5 from 46.9, and activities in Spain expanded at a slower pace of 53.1 from 54.5 in October, respectively. 

UK Home Price Growth Accelerated In October

UK home price increases accelerated in November, and home prices are just 1% below record highs in the summer of 2022. 

The Nationwide House Price Index in the UK increased 3.7% from a year ago in November following a 2.4% rise in October, according to Nationwide Building Society. 

“The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels. 

The pickup in price growth is unlikely to have been driven by upcoming stamp duty changes, since the majority of mortgage applications commenced before the budget announcement," said Nationwide's Chief Economist, Robert Gardner.

Europe Indexes and Yields

The DAX index increased by 0.9% to 19,790.41; the CAC-40 index fell by 0.4% to 7,212.18; and the FTSE 100 index inched higher by 0.1% to 8,295.91.

The yield on 10-year German bonds edged lower to 2.04%, French bonds inched down to 2.86%, the UK gilts edged lower to 4.24%, and Italian bonds decreased to 3.22%.

The euro edged higher to $1.05; the British pound inched down to $1.26; and the U.S. dollar eased to 88.65 Swiss cents.

Brent crude increased $0.25 to $72.64 a barrel, and the Dutch TTF natural gas rose by €0.51 to €48.42 per MWh. 

Europe Stock Movers

Delivery Hero SE plunged 11.4% to €34.26 after the German delivery company said its Spanish unit, Glovo, will switch to an employment model from a freelance model under pressure from the Spanish government. 

Stellantis NV dropped 11.2% to €11.44 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

Supreme PLC gained 4.8% to 175.0 pence after the consumer products company acquired Typhoo Tea from bankruptcy administration for £10.2 million in cash.

Euro Area Manufacturing Struggles, UK Home Price Increases Accelerates, Fran

European markets struggled to advance in Monday's trading after a survey of manufacturing activities in the currency union highlighted ongoing stress. 

Benchmark indexes in Frankfurt, Milan, and London traded in a tight range, but in Paris edged lower amid rising political uncertainty. 

France Heads for Government Collapse

France's National Rally's leader, Jordan Bardella, said his party is ready to support a no-confidence motion against the minority government in the coming days in the event the current budgetary measures are not revised. 

France is likely to head for a political chaos as three leading political groups struggle to agree on the size of cost cuts and new tax measures to lower the budget deficit that is set to zoom to over 6% in 2024. 

Euro Area's Manufacturing Activities Struggle

On the economic front, the Euro Area's manufacturing sector activities deteriorated further in November, indicating deeper contraction in production, inventories, orders, and new orders. 

The HCOB Eurozone Manufacturing Purchasing Managers' Index eased to 45.2 in November from the revised 46.0 in October, S&P Global said in a note today. 

The manufacturing activities in Italy contracted further and fell to the lowest level in 2024 to 44.5 from 46.9, and activities in Spain expanded at a slower pace of 53.1 from 54.5 in October, respectively. 

UK Home Price Growth Accelerated In October

UK home price increases accelerated in November, and home prices are just 1% below record highs in the summer of 2022. 

The Nationwide House Price Index in the UK increased 3.7% from a year ago in November following a 2.4% rise in October, according to Nationwide Building Society. 

“The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels. 

The pickup in price growth is unlikely to have been driven by upcoming stamp duty changes, since the majority of mortgage applications commenced before the budget announcement," said Nationwide's Chief Economist, Robert Gardner.

Europe Indexes and Yields

The DAX index increased by 0.9% to 19,790.41; the CAC-40 index fell by 0.4% to 7,212.18; and the FTSE 100 index inched higher by 0.1% to 8,295.91.

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched down to 2.93%, the UK gilts edged lower to 4.22%, and Italian bonds decreased to 3.30%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar eased to 88.08 Swiss cents.

Brent crude decreased $0.82 to $72.24 a barrel, and the Dutch TTF natural gas fell by €0.38 to €46.34 per MWh. 

Europe Stock Movers

Delivery Hero SE plunged 11.4% to €34.26 after the German delivery company said its Spanish unit, Glovo, will switch to an employment model from a freelance model under pressure from the Spanish government. 

Stellantis NV dropped 11.2% to €11.44 after chief executive Carlos Tavares resigned with immediate effect on Sunday. 

Supreme PLC gained 4.8% to 175.0 pence after the consumer products company acquired Typhoo Tea from bankruptcy administration for £10.2 million in cash.

Technology and Banking Stocks Drive Nikkei 225 Rebound, Capital Spending Accelerates In Third Quarter

Stock market indexes in Japan reversed morning losses to close higher after banks and tech stocks advanced. 

The Nikkei 225 stock average gained 0.8%, and the broader Topix index increased 1.3%.

Stocks struggled in early trading but managed to recover after capital spending at large Japanese corporations rose in the third quarter, signaling resilience in corporate confidence and reinforcing expectations that the Bank of Japan will continue to raise rates. 

Capital spending in the third quarter increased 8.1% from 7.4% in the second quarter, data from the Ministry of Finance showed. 

Capital spending rose for the 14th consecutive month, driven by a surge in general-purpose machinery of nearly 62%, petroleum and coal products by 56.5%, and transport and postal activities by 32.7%. 

The final au Jibun Bank Japan manufacturing purchasing managers' index eased to 49.0 in November, matching the preliminary estimate released, and dropped from 49.2 in October.  

On the economic front, investors are looking forward to rate decisions by the Bank of Japan in two weeks, and hopes are rising that policymakers will raise rates by at least 25 basis points. 

The Japanese yen edged down to 150.32 against the U.S. dollar after trading below 150 in Friday's session. 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.8% to 38,513.02, and the broader Topix index advanced 1.3% to 2,714.72. 

Advantest Corp. increased 2.2% to ¥8,421.0, Tokyo Electron gained 1.4% to ¥23,640.0, and Lasertec decreased 0.8% to ¥16,305.0. 

Mitsubishi UFJ Financial advanced 1.9% to ¥1,826.50, Sumitomo Mitsui Financial rose 3.7% to ¥3,823.0, and Mizuho Financial gained 2.5% to ¥3,879.0. 

Fast Retailing dropped 1.4% to ¥50,430.0, and the company denied that it is sourcing cotton from the Xinjiang region of China, which has been accused of using forced labor and jailing citizens in recent years. 

Technology and Banking Stocks Drive Nikkei 225 Rebound, Capital Spending Accelerated In Third Quarter

Stock market indexes in Japan reversed morning losses to close higher after banks and tech stocks advanced. 

The Nikkei 225 stock average gained 0.8%, and the broader Topix index increased 1.3%.

Stocks struggled in early trading but managed to recover after capital spending at large Japanese corporations rose in the third quarter, signaling resilience in corporate confidence and reinforcing expectations that the Bank of Japan will continue to raise rates. 

Capital spending in the third quarter increased 8.1% from 7.4% in the second quarter, data from the Ministry of Finance showed. 

Capital spending rose for the 14th consecutive month, driven by a surge in general-purpose machinery of nearly 62%, petroleum and coal products by 56.5%, and transport and postal activities by 32.7%. 

The final au Jibun Bank Japan manufacturing purchasing managers' index eased to 49.0 in November, matching the preliminary estimate released, and dropped from 49.2 in October.  

On the economic front, investors are looking forward to rate decisions by the Bank of Japan in two weeks, and hopes are rising that policymakers will raise rates by at least 25 basis points. 

The Japanese yen edged down to 150.32 against the U.S. dollar after trading below 150 in Friday's session. 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.8% to 38,513.02, and the broader Topix index advanced 1.3% to 2,714.72. 

Advantest Corp. increased 2.2% to ¥8,421.0, Tokyo Electron gained 1.4% to ¥23,640.0, and Lasertec decreased 0.8% to ¥16,305.0. 

Mitsubishi UFJ Financial advanced 1.9% to ¥1,826.50, Sumitomo Mitsui Financial rose 3.7% to ¥3,823.0, and Mizuho Financial gained 2.5% to ¥3,879.0. 

Fast Retailing dropped 1.4% to ¥50,430.0, and the company denied that it is sourcing cotton from the Xinjiang region of China, which has been accused of using forced labor and jailing citizens in recent years.