Japanese Stocks Rise on US Growth Optimism; Traders Eye BOJ
Japanese stocks rose as optimism the US economy will achieve a soft landing spurred appetite for riskier assets. Investors are awaiting the Bank of Japan's policy decision Friday.
The Topix gained 1.4% to 2,654.45 as of 9:09 a.m. Tokyo time, while the Nikkei 225 Stock Average advanced 1.9% to 37,861.76. Toyota Motor Corp. contributed the most to the Topix's gain, increasing 2%. Out of 2,131 stocks in the index, 1,648 rose and 347 fell, while 136 were unchanged.
Tech companies climbed after their US peers led gains Thursday, with the Nasdaq 100 adding 2.6% and the Russell 2000 of small caps climbing 2.1%. The Fed's bold rate cut and its determination not to fall behind the curve re-ignited hopes the central bank will be able to prevent a recession. US data Thursday showed jobless claims fell to the lowest since May in a solid labor market.
Economists expect the BOJ to leave interest rates unchanged. Traders will closely monitor comments from Governor Kazuo Ueda after the policy decision.
Japanese stocks tumbled into a bear market in early August after a BOJ rate hike and Ueda's hawkish stance sent the yen higher. The benchmark Topix is still down about 5% since the central bank's last meeting on July 31.
Source : Bloomberg
