Japanese Shares Rise as U.S. Shutdown Deal Nears House Vote

MT Newswires Live11-12

Japanese shares rose on Wednesday as expectations grew that the U.S. Congress would resolve the federal shutdown, while investors sought cues amid a lack of economic data.

The Nikkei 225 rose 0.43%, or 220.38 points, to end at 51,063.31.

U.S. lawmakers returned to Washington on Tuesday after a 53-day recess to vote on a deal that could end the record-long government shutdown. Nearly 1,200 flights were canceled amid the disruption, prompting some legislators to drive or carpool to the Capitol.

The House is expected to vote Wednesday on the compromise, which the Senate approved Monday night.

In economic news, Japan's machine tool orders rose 10% in September to 137.78 billion yen, driven by a 13% jump in exports. Orders for January-September climbed 5.8% to 1.164 trillion yen.

The Reuters Tankan survey showed manufacturers' sentiment rose to plus 17 in November, its highest since early 2022, boosted by strong electronics and auto demand. Non-manufacturing confidence held at plus 27 on steady tourism demand.

On the corporate front, Mitsui & Co (TYO:8031), which ended 1.3% higher, signed a 20-year agreement to buy 1 million tonnes of LNG annually from U.S. exporter Venture Global starting in 2029. The deal is Venture Global's third long-term contract with a Japanese firm, lifting its 2025 total to 6.75 million tonnes per year.

NSK (TYO:6471), which ended 0.5% lower, began consultations on closing its Peterlee production sites in northern England as part of efforts to improve profitability in Europe. The plan, which could affect about 350 employees, may take effect by March 2027.

Mitsuba (TYO:7280), which rose 2.7%, will set up an R&D subsidiary in Chennai, India, in April 2026 with 500 million rupees in capital, a Wednesday filing showed. The new unit will develop and market automotive and electrical components.

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