Fed Optimism Boosts Japanese Stocks
The Nikkei 225 jumped 1.22% to close at 44,372, while the Topix Index rose 0.22% to 3,148 on Thursday. The Nikkei hit a new record high as an unexpected drop in US producer prices for August raised expectations of a deeper Fed interest rate cut. Investors are now eyeing US consumer inflation data for further direction.
Domestically, surveys showed business sentiment in Japan improved in the third quarter, supported by a sharp rebound in exports as companies increased shipments to the US ahead of the newly imposed 15% base tariff. Separate data showed producer prices rose 2.7% year-on-year in August, accelerating from a revised 2.5% increase in July. Technology stocks led the gains, with strong gains from SoftBank Group (10%), Advantest (4.4%), and Disco (6.5%). Other leading index stocks also advanced, including Fujikura (2.6%) and Mitsubishi Heavy Industries (2%).
Source: Trading Economics