Japan Shares Advance After Olympics Selection, GDP Data
Japanese shares rose, with the Topix (TPX) index headed for its highest level in a month, after Tokyo was selected to host the 2020 Olympics and data showed the economy grew more than initially estimated in the second quarter.
Developers and construction stocks led gains as all 33 Topix subsectors rose. Nomura Real Estate Holdings Inc., an affiliate of Japan’s biggest brokerage, added 6 percent. Kajima Corp., a construction company expected to benefit from Tokyo’s selection, climbed the most on the Nikkei 225 Stock Average. Dentsu Inc. (4324), which has broadcast rights for the games in Asia, surged 7.8 percent.
The Topix gained 2.6 percent to 1,177.34 as of 9:19 a.m. in Tokyo, heading toward its highest close since Aug. 6. The Nikkei 225 Stock Average climbed 2.7 percent to 14,227.90 yen, with just two companies falling.
Tokyo out-polled Istanbul 60-36 in a runoff vote among members of the International Olympic Committee meeting in Buenos Aires over the weekend. Hosting the 2020 Olympics may boost construction and tourism and lift consumer confidence. The yen weakened after the announcement, falling to as low as 100.11 against the dollar today.
Japan’s gross gross domestic product rose an annualized 3.8 percent in the second quarter from the three months through March, revised from an original estimate of 2.6 percent. The median forecast of economists surveyed by Bloomberg was for a 3.9 percent gain.
Futures on the Standard & Poor’s 500 Index climbed 0.1 percent. The measure was little changed in New York on Sept. 6, as investors weighed tensions over Syria and slower-than forecast jobs growth that eased concern about cuts in stimulus.
Employers in the U.S. added 169,000 workers last month, missing the median forecast of 180,000 in a Bloomberg survey of 96 economists. The unemployment rate unexpectedly fell to 7.3 percent as more people left the labor force.
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