By Stanley White
TOKYO, Dec 2 (Reuters) - Japanese shares rose on Monday by
the most in a month after data showed China's factory activity
and domestic demand picked up, easing concern about the health
of the world's second-largest economy.
The Nikkei index ended up 1.01% at 23,529.50, led by gains
in the consumer discretionary sector and the industrial sector.
So far this year the index is up 16.38%.
Japanese shares started brightly in reaction to government
data released Friday that showed improvement in China's vast
manufacturing sector, suggesting Beijing's stimulus measures are
starting to support growth. Shares extended gains after a separate survey of China's
manufacturing sector was revised up to show the fastest growth
in almost three years, but an ongoing trade war between the
United States and China remains a risk to the outlook.
"The rebound in Chinese manufacturing data is supporting
Japanese shares," said Hideyuki Ishiguro, senior strategist at
Daiwa Securities in Tokyo
"In addition, U.S. online sales on Black Friday are another
positive sign. If the world's two largest economies are on solid
footing, then this is a good thing for Japanese companies."
There were 200 advancers on the Nikkei index against 24
decliners on Monday.
The largest percentage gainers in the index were electrical
equipment makers GS Yuasa Corp 6674.T up 4.02%, followed by
Taiyo Yuden Co Ltd 6976.T gaining 3.80% and machinery
equipment maker Hitachi Zosen Corp 7004.T up by 3.57%.
The largest percentage losses in the index were power cable
maker Fujikura Ltd 5803.T down 2.55%, followed by Suzuki Motor
Corp 7269.T losing 2.08% and property developer Tokyu Fudosan
Holdings Corp 3289.T down by 0.93%.
Some Japanese shares got a boost after reports of robust
online sales in the United States on Black Friday last week,
when companies offer discounts to mark the start of the year-end
shopping season.
Japanese stocks also rose after the yen JPY=EBS fell to a
six-month low of 109.73 versus the dollar. A weaker yen inflates
exporters' earnings when repatriated from overseas.
The Topix index .TOPX rose 0.89% on Monday to 1,714.49.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.95 billion, compared to the average of
1.26 billion in the past 30 days.
(Editing by Stephen Coates)