On Wednesday, the Nikkei 225 index saw a rise of 0.3%, closing at 45,630, while the Topix index increased by 0.23% to end at 3,170. This marked a reversal from the earlier losses experienced within the session, primarily driven by gains in technology stocks. Japanese markets found additional support through foreign investment and the continuing global enthusiasm surrounding artificial intelligence advancements.
In terms of economic data, the September PMI figures indicated that the manufacturing sector remained in contraction, contrary to expectations of growth, whereas the services sector experienced slower expansion. Market participants are now focusing on impending data releases, including Tokyo's inflation figures and the minutes from the Bank of Japan's July policy meeting, seeking insights into future policy directions.
Conversely, U.S. markets faced a downturn overnight following comments from Federal Reserve Chair Jerome Powell, who cautioned about inflated stock valuations and highlighted uncertainties regarding future rate-cut plans. Notable gainers in the Japanese market included SoftBank Group, which surged by 6%, Tokyo Electron, which rose by 2.5%, and Disco, which gained 2.4%.
