FX.co ★ Japanese Shares Track Wall Street Higher

The Nikkei 225 Index climbed by 1.14% on Wednesday, closing at 49,865. This rise helped recover losses witnessed earlier in the week, supported by favorable movements in Wall Street as investors anticipated additional rate cuts by the US Federal Reserve. There was a noticeable improvement in risk appetite, fueled by optimism for a potential year-end rally in global markets. Domestically, a note of caution prevailed as market participants speculated on the possibility of the Bank of Japan increasing interest rates this month. Governor Kazuo Ueda noted that the BOJ is evaluating the benefits and drawbacks of a rate hike and will make decisions accordingly. The technology sector spearheaded gains with robust performances from companies like SoftBank Group, which surged 6.4%, Advantest at 5.3%, Fujikura with a 2.6% rise, Tokyo Electron advancing by 4.7%, and Lasertec soaring 7.3%. In contrast, the financial and consumer sectors faced declines, with notable decreases in Mitsubishi UFJ and Sumitomo Mitsui, both down by 2.1%, and Toyota Motor, which fell by 1.3%.