TOKYO: Japanese stocks rose as U.S. economic data provided more support for the Federal Reserve to raise interest rates next month, boosting the dollar against the yen.
The Topix index climbed 0.6 percent to 1,603.84 as of 12:32 p.m. in Tokyo, with construction stocks leading gains while paper makers declined. The Nikkei 225 Stock Average added 0.6 percent to 19,972.56, on course for its highest close in three months. The yen traded at 122.58 per dollar after weakening on Wednesday as a report showed U.S. durable goods orders rose more than expected.
“U.S. economic data was in line with expectations and provides some comfort,” said Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co. in Tokyo. “Investors expect markets will rise after the U.S. rate hike since uncertainty will be dispelled. They want to buy stocks now.”
Orders for U.S. non-military capital goods excluding aircraft rose 1.3 percent, the most in three months. Traders are pricing in a 72 percent chance of a rate hike at the Fed meeting on Dec. 15-16.
