FX.co ★ Japanese Shares Rise on Wall Street Boost

On Thursday, the Nikkei 225 Index increased by 1.1%, surpassing the 42,400 mark, while the broader Topix Index rose by 0.7% to reach 3,070. This movement marked a recovery from losses experienced in the previous session and was in line with a technology-led rally observed on Wall Street. The upward momentum was mainly driven by significant gains in Alphabet and Apple, especially after Google’s parent company, Alphabet, successfully avoided a breakup due to an antitrust case. Despite these gains, apprehension regarding the global economic climate continues to temper optimism. Additionally, a decline in bond yields contributed positively to the equity market, with Japan’s 10-year yield retreating from peaks not seen in 17 years. On Wednesday, the Governor of the Bank of Japan, Kazuo Ueda, reaffirmed that the bank’s position on rate increases remains constant, contingent on growth and inflation meeting projections. Investors are now looking forward to Friday, anticipating wage data that could provide further insights into policy direction. Among the top performers were Fujikura, rising 5%, SoftBank Group with a 3.9% increase, Advantest up by 2.5%, Tokyo Electric Power appreciating by 2.4%, and Fast Retailing advancing 2.3%.