FX.co ★ Japanese Shares Rise on Wall Street Boost

The Nikkei 225 Index surged 1.85% to reach 49,559, while the broader Topix Index climbed 1.96% to settle at 3,356 on Wednesday. This performance marked a reversal of the losses from the previous session, closely following gains on Wall Street as traders heightened their expectations for a rate cut by the US Federal Reserve in the upcoming month. The anticipation of a rate cut gained momentum following recent US data indicating a slowdown in consumer spending, alongside reports suggesting that a candidate with dovish tendencies is being considered for the position of the next Fed chair. The technology sector led the charge in this rally, with notable increases seen in companies like Advantest, Fujikura, SoftBank Group, and Disco Corp, which all appreciated between 2% and 5.7%. Conversely, Kioxia Holdings saw a sharp decline of nearly 15% after it was reported that a Bain Capital-backed entity offloaded $2.1 billion of shares in the memory chip manufacturer at a discounted price. Looking elsewhere, investors remained focused on assessing the future policy direction of the Bank of Japan amid speculation over potential interest rate hikes being contemplated for the following month.