The Nikkei 225 Index climbed 0.9% to move above 59,000, while the broader Topix Index gained 1.3% to 3,895 on Thursday, with both benchmarks closing at new record highs. Sentiment was supported by ebbing expectations of an imminent interest rate hike by the Bank of Japan, which buoyed risk appetite.
Confidence that the BOJ will tread carefully on further tightening was reinforced on Wednesday, when Prime Minister Sanae Takaichi nominated two reflation-minded academics to the central bank’s policy board. Japanese equities also tracked gains on Wall Street, as software and other technology names rebounded overnight.
Still, stronger-than-expected earnings from Nvidia did little to significantly boost its share price, underscoring persistent doubts about the sustainability of the AI-driven rally. In Tokyo, notable movers among index heavyweights included Fujikura (+2.5%), JX Advanced Metals (+3.6%), Mitsubishi Heavy Industries (+4%), SoftBank Group (-5.1%) and Mitsubishi UFJ (+2.9%).
