Nikkei hits two-month high on China strength

The Japanese stock market hit an eight-week high following the release of strong China manufacturing data and improving domestic consumer sentiment.

The Nikkei 225 closed up 2% at 14,935 - its highest level since 7 April - after a surprise uptick for China's manufacturing industry. Data showed Chinese PMI expanded the fastest in five months, while Japanese capital spending reached highs not seen since 2012. Export-focussed businesses led the charge, with the yen weakening against the dollar by 0.3%.  Precision tool maker Shimadzu Corp rose 3.8% while air conditioner maker Daikin Industries rose 2.4%.  The news comes despite growing tensions between Japan and its Chinese neighbour. Yesterday the Chinese government denounce...