FX.co ★ Japanese Shares Gain for Second Session

The Nikkei 225 Index rose 0.9% to above 68,300, while the broader Topix Index advanced 1% to 4,080 on Wednesday, extending the previous session’s gains as Japanese equities followed Wall Street higher. Softer-than-expected US inflation data eased expectations of a near-term Federal Reserve interest rate hike, supporting risk appetite.

Investors also largely looked past escalating geopolitical tensions in the Middle East, even after former President Donald Trump threatened additional strikes on Iran and reinstated a US blockade against Tehran in the Strait of Hormuz.

On the domestic front, data showed that Japan’s core machinery orders declined more than expected in May, underscoring broad-based weakness in business investment.

Technology and AI-related names led the advance, with Kioxia Holdings jumping 6.7%, Advantest gaining 4.4%, Tokyo Electron rising 1.6%, Taiyo Yuden adding 5.7%, and Lasertec surging 6.9%.