FX.co ★ Nikkei Gains in Early Morning Trade

On Tuesday morning, the Nikkei 225 experienced a modest rise of 0.29%, settling at approximately 49,450. In contrast, the Topix Index remained almost flat, hovering near 3,339, as investors opted to capitalize on profits. This follows a significant 1.89% drop in the previous session, spurred by increasing speculation regarding a potential interest rate hike from the Bank of Japan. The broader index mirrored overnight gains observed on Wall Street, driven by mounting anticipation of Federal Reserve interest rate cuts expected next week, with more than 85% of predictions favoring a 25-basis-point reduction. Despite this, market participants maintained a close watch on developments related to Prime Minister Sanae Takaichi's economic revitalization plans, as well as the evolving dynamics in China-Japan relations. Key sectors propelling the index included financials, retail trade, and energy minerals, while electronics experienced a marginal recovery after a sharp decline the day before. Among the early market leaders were Fanuc Corp, which surged by 8.6%, NGK Insulator with a 4.9% gain, Yaskawa Electric Corp rising 4.1%, and Sumitomo Electric, up by 3.1%. Additionally, Fijuikura rebounded by 2.8% following an 8.9% slump in the prior session.