Japan Stocks Set to Finish Year with Robust Gains

The Nikkei 225 experienced an increase of 114 points, or 0.2%, reaching 50,417 during early trading on Tuesday, marking the last trading session of the year. This rise was predominantly driven by advancements in the utilities and energy sectors. This improvement comes after a downturn in the previous session, prompted by the Bank of Japan's December summary meeting, which indicated that several board members anticipated potential further interest rate hikes following the board's decision to raise its policy rate to a 30-year high of 0.75% in mid-December. There was notable selective buying in major companies such as Toyota Motor, with a 0.6% increase, alongside significant growth from Fujitsu, up by 1.8%, and Murata Manufacturing, which rose by 1.2%. Over the complete year, the Nikkei is poised to soar approximately 28%, marking its third consecutive annual rise. This surge is supported by Japan’s continuous economic recovery, robust corporate earnings, and diminishing global trade challenges. In contrast, the broader Topix saw a slight decrease after a modest previous increase, yet it still aims to achieve a substantial gain of about 23% for the year, thereby also extending its streak of annual increases to three years.