What's Driving the Japanese Market Rally?
The Nikkei 225 index rose 1.14% to close at 49,865 on Wednesday, recovering losses from earlier in the week and tracking gains on Wall Street. This rise was driven by expectations that the US Federal Reserve will cut interest rates again, boosting investor risk appetite. However, Japanese market participants remained cautious amid speculation that the Bank of Japan could raise interest rates this month. BOJ Governor Kazuo Ueda stated that the central bank is still weighing the positive and negative impacts before making a decision.
The technology sector was the driving force behind the rally, with major stocks such as SoftBank Group, Advantest, Tokyo Electron, Fujikura, and Lasertec rallying. Meanwhile, the financial and consumer discretionary sectors weakened, with Mitsubishi UFJ, Sumitomo Mitsui, and Toyota Motor posting declines. This divergence in movement between sectors reflects mixed market sentiment ahead of the Bank of Japan's important decision. (az)
Source: Newsmaker.id
