FX.co ★ Japanese Shares Gain After Fed Rate Cut

On Thursday, the Nikkei 225 climbed by 0.4%, neared the 45,000 mark, while the Topix index experienced a modest rise of 0.1% to reach 3,150. This positive movement came as Japanese stocks bounced back from previous losses following the anticipated quarter-point rate cut announced by the US Federal Reserve. In its forecast, the Fed indicated plans for two additional rate cuts within the current year, but only one in 2026, contrary to market expectations of two or three reductions in the upcoming year. Meanwhile, the Bank of Japan commenced its two-day policy meeting, with speculation leaning towards maintaining the current rates to evaluate the effects of US tariffs on Japan’s export-dependent economy. However, some analysts suggest a possible rate increase by the BOJ of 25 basis points in October, given the economy's showing signs of resilience. The technology sector spearheaded the gains, notably with Disco up by 3.1%, Tokyo Electron by 3.2%, Advantest increasing by 3%, SoftBank Group rising by 1.5%, and Lasertec achieving a 3.3% gain.