FX.co ★ Japanese Shares Gain on US-China Optimism

The Nikkei 225 Index rose by 0.5%, reaching approximately 38,400, while the broader Topix Index increased by 0.2% to 2,791 on Wednesday. This marks the fourth consecutive session of gains for Japanese equities, buoyed by positive developments in the US-China trade discussions. US Commerce Secretary Howard Lutnick announced that both countries have established a framework to enact the Geneva consensus, following a call between their presidents. Domestically, Japan's producer prices grew by 3.2% year-on-year in May, marking the slowest increase in eight months and offering some relief from inflationary pressures. Furthermore, Bank of Japan Governor Kazuo Ueda affirmed on Tuesday that the central bank remains ready to hike interest rates again, should there be enduring confidence that core inflation will consistently reach around 2%. The rally was primarily driven by technology stocks, with significant advances from companies such as Advantest (up 3.2%), Disco (up 2.2%), Lasertec (up 3.4%), Tokyo Electron (up 2.6%), and SoftBank Group (up 1.9%).