FX.co ★ Japanese Shares Rise as Yen Weakens

The Nikkei 225 Index advanced by 0.7%, surpassing the 50,980 mark, while the broader Topix Index increased by 0.6%, reaching 3,405 on Wednesday. This progression marked the third consecutive session of gains, coinciding with the continued depreciation of the yen. The currency fell despite indications from Bank of Japan Governor Kazuo Ueda that the central bank is nearing its inflation target, which hints at a potential interest rate hike in the near future. A weaker yen enhances profit prospects for Japanese industries that rely heavily on exports and renders domestic assets more appealing to foreign investors. Meanwhile, markets were also preparing for the anticipated interest rate cut by the US Federal Reserve later today, with particular focus on the guidance for the next year. The rise was widespread, driven by companies such as SoftBank Group, which climbed 0.8%, Fanuc with a 4.4% increase, Tokyo Electron up by 1.3%, Kawasaki Heavy gaining 4.3%, and Tokyo Electric Power advancing 2.1%.