(MENAFN) European stocks saw a rise on Tuesday, providing relief to investors as weaker-than-expected UK wage growth data influenced market sentiment. The European STOXX 600 index increased by 0.1 percent, marking its third consecutive day of gains. The subdued wage growth in Britain, reported during the three months ending in October, contributed to a 0.4 percent rise in the main index in the UK.

However, the communications sector sub-index faced declines, primarily due to a 2.1 percent drop in Nokia's stock. The Finnish communications equipment manufacturer revised its operating margin target for the year 2026 downward, impacting the overall performance of the sector.

In Japan, the Nikkei index recorded modest gains amid diminishing expectations of an imminent move by the Bank of Japan at the upcoming policy meeting. The Nikkei concluded trading with a 0.16 percent increase at 32,843.70 points, extending gains for the second consecutive day. The index had initially surged by 1.16 percent but tapered gains as the yen strengthened. The rise in the yen has implications for the profit expectations of exporting companies listed on the index.

The broader Topix index, however, experienced a 0.23 percent decline, influenced by the rise in financial company stocks amid concerns about the prolonged period of low interest rates. Bank of Japan officials reportedly do not perceive an urgent need to exit negative interest rates this month, citing insufficient indicators of sustainable inflation justified by wage growth.

Despite the challenges, heavyweight chip companies supported the Nikkei index, maintaining a positive trajectory. High-tech stocks received a boost from the strong performance of their American counterparts, propelling the technology sector to the top of the Nikkei index. Tokyo Electron, a chip manufacturing equipment giant, and Renesas Electronics were among the key contributors to the index's performance.

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