Tokyo stocks up at break on Japan business spending

TOKYO: Tokyo shares rose Thursday morning as a survey showed Japanese firms boosted their capital spending in the first quarter, a sign they are growing more confident and the latest clue that the economy is picking up.

Tokyo's benchmark Nikkei 225 index jumped 1.04 percent, or 203.70 points, to 19,854.27 by the break, while the Topix index of all first-section shares gained 0.98 percent, or 15.32 points, to 1,583.69.

The rebound, after four days of declines, followed a drop Wall Street where an underwhelming Federal Reserve report dampened investor spirits.

The Fed's "beige book" said that while most regions of the United States continue to see modest to moderate growth, optimism about the economic outlook has waned, partly due to concerns over government policies.

Shortly before the opening bell in Tokyo, government data showed that capital spending by Japanese firms rose 4.5 percent on-year during the three months to March.

The figures came a day after separate numbers showed that Japan's factory output in April climbed at its fastest pace in six years.

"There are good stories and bad stories out there for investors, but the market is largely welcoming the upbeat business investment data," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told AFP.

Toyota rose 1.12 percent to 5,999 yen and Canon jumped 2.98 percent to 3,893 yen after it announced plans for a share buyback.

Energy firms fell following heavy losses in oil prices Wednesday, with Japan Petroleum down 0.80 percent at 2,212 yen and Inpex falling 1.17 percent to 1,006.5 yen.

The dollar strengthened to 110.94 yen from 110.75 yen in New York.