FX.co ★ Japanese Stocks Rise for Second Session

The Nikkei 225 index experienced a 0.8% increase, reaching approximately 45,300, while the more comprehensive Topix index rose by 0.7% to 3,110 on Friday. This marks the second consecutive session of gains for Japanese stocks, reflecting similar upward trends seen in Wall Street. The surge in the artificial intelligence sector took center stage, overshadowing concerns about a potential US government shutdown, and elevating US stock indexes to new record levels. Investor sentiment was further buoyed by OpenAI’s impressive $6.6 billion share offering, which valued the company at a remarkable $500 billion, alongside significant news of a collaboration with South Korean chipmakers, which bolstered optimism regarding the AI industry. Domestically, Japan reported a rise in its unemployment rate to 2.6% in August, the highest in over a year, exceeding expectations which were pegged at 2.4%. The probability of further interest rate hikes by the Bank of Japan remains uncertain due to mixed economic signals and international trade challenges. Leading the market were prominent gainers such as SoftBank Group, which climbed 4.4%, Tokyo Electron up by 2.1%, Sanrio with a 1.5% increase, Hitachi surging by 6.3%, and Tokyo Electric Power rising by 4.1%.