FX.co ★ Japanese Shares Track Wall Street Higher

The Nikkei 225 Index rose by 1.3% to reach 43,275, while the broader Topix Index increased by 0.83% to 3,092 on Wednesday—both indices achieving new record highs following a rally in the U.S. markets overnight. These gains were driven by U.S. inflation data that heightened expectations for a potential Federal Reserve rate cut next month, coupled with robust Japanese corporate earnings that continue to provide positive momentum. On the domestic front, sentiment among manufacturers improved for the second consecutive month in August, attributed to a trade agreement with Washington. This agreement reduced U.S. tariffs on automobiles and other goods to 15% in return for a $550 billion Japanese investment package. Meanwhile, the growth of producer prices decelerated to an 11-month low in July, highlighting the pressure on companies from increased U.S. tariffs. Companies that saw notable gains included Sanrio, which rose by 8.6%, Mitsubishi Heavy, up by 3.8%, Advantest, with a 5.4% increase, Tokyo Electric Power, rising by 7.1%, and Sony Group, which climbed by 3.5%.