FX.co ★ Japanese Shares Rise in Post-Holiday Trade

On Friday, the Nikkei 225 Index experienced a 0.5% increase, moving beyond the 37,900 mark, while the broader Topix Index saw a rise of 0.4% to settle at 2,807 in post-holiday trading. Japanese markets advanced as they aligned with the global market uptrend, influenced by the U.S. Federal Reserve's communication indicating the possibility of two interest rate cuts within the year. Furthermore, Federal Reserve Chairman Jerome Powell provided additional market assurance, describing the inflation linked to tariffs as likely being "transitory." Both the Nikkei and Topix indices appear poised to achieve weekly gains of over 2% and 3%, respectively. On the economic front, Japan's core inflation rate decelerated to 3% in February, down from 3.2% in January, though it outstripped projections of 2.9%. This marks the second month in a row that inflation has surpassed expectations, highlighting ongoing price pressures and bolstering the justification for potential further interest rate hikes. Among the standout performers, Mitsubishi UFJ surged by 3.8%, Sanrio advanced 4.5%, with Fujikura, Sony Group, and SoftBank Group seeing gains of 2.4%, 2.7%, and 2.4%, respectively.