FX.co ★ Japanese Shares Rise as Risk Sentiment Improves

The Nikkei 225 Index experienced a 0.6% increase, climbing to over 49,600 on Wednesday. This upward movement helped offset earlier losses from the week, as an optimistic session on Wall Street and a recovery in bitcoin indicated a more favorable risk appetite. Investors are also anticipating a potential interest rate cut by the US Federal Reserve next week and are considering the prospect of a year-end rally in global stock markets. Domestically, investors are weighing the probability of a Bank of Japan rate hike this month, following recent assertive comments from policymakers, despite Prime Minister Sanae Takaichi's administration continuing to favor accommodative monetary policies. The technology sector spearheaded the advance, with significant gains from SoftBank Group (2.6%), Advantest (4%), Fujikura (2.3%), Tokyo Electron (3.9%), and Lasertec (3.8%). Conversely, the financial and consumer sectors mostly saw declines, including Mitsubishi UFJ (-1.8%), Sumitomo Mitsui (-2%), and Toyota Motor (-1.6%).