FX.co ★ Japanese Shares Gain on Fed Rate Cut Bets

The Nikkei 225 Index climbed 0.6% to exceed 44,000 on Thursday, building on its gains from the previous day. This upward momentum was largely driven by a surprise decline in U.S. producer prices for August, which bolstered expectations for more significant rate cuts by the Federal Reserve. Market participants are now closely watching upcoming U.S. consumer inflation data for further insights. Domestically, survey results indicated an improvement in business sentiment in Japan for the third quarter. This positive outlook is attributed to a robust recovery in exports, as companies expedited shipments to the U.S. before the enactment of new 15% blanket tariffs. Another report highlighted that Japan's producer prices rose 2.7% year-over-year in August, accelerating from a revised 2.5% increase in July. Technology stocks spearheaded the market rally, with significant gains from SoftBank Group, which surged 6.7%, along with Advantest and Disco, which rose 2.9% and 2.1%, respectively. Other major players also saw advances, including Fujikura with a 1.2% rise and Mitsubishi Heavy Industries up by 2%.