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

On Thursday, the Nikkei 225 experienced a rise of 1.22%, closing at a noteworthy 44,372, with the Topix Index also seeing an increase of 0.22% to end at 3,148. The Nikkei reached a new record high, driven by a surprising decline in U.S. producer prices for August, which heightened expectations for more significant interest rate cuts by the Federal Reserve. Investors are eagerly awaiting U.S. consumer inflation data for additional guidance. On the domestic front, the latest surveys indicated an improvement in business sentiment in Japan during the third quarter. This boost was largely attributed to a significant rebound in exports, as companies expedited shipments to the U.S. in anticipation of newly imposed 15% tariffs. Moreover, separate data revealed that Japan's producer prices climbed 2.7% year-on-year in August, marking an acceleration from a revised 2.5% increase in July. The technology sector spearheaded the market's advance, highlighted by substantial gains from SoftBank Group (up 10%), Advantest (up 4.4%), and Disco (up 6.5%). Other major market players, such as Fujikura (up 2.6%) and Mitsubishi Heavy Industries (up 2%), also saw positive movement.