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

The Nikkei 225 Index advanced by 0.5%, surpassing 48,850, while the Topix Index climbed 0.2% to reach 3,305 on Tuesday as the markets rebounded from earlier losses following a long holiday weekend. Japanese stocks mirrored the tech-driven surge seen on Wall Street the previous night, fueled by renewed confidence in artificial intelligence prospects and building expectations for a potential interest rate reduction by the Federal Reserve in December. Technology firms led the local upswing, with significant rises from Advantest (4.4%), Fujikura (3.8%), Tokyo Electron (2.8%), Recruit Holdings (1%), and Keyence (0.5%). Additionally, the weakened yen bolstered market sentiment by enhancing the financial outlook for Japan's export-driven sectors. However, investors remained vigilant amid heightened speculation about possible official interventions, spurred by recent statements from Japanese authorities. The anticipation of upcoming US holidays was seen as an opportune moment for potential market actions.