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

The Nikkei 225 Index advanced by 0.7% to surpass 47,000 points, while the broader Topix Index appreciated by 0.8%, reaching 3,160 on Wednesday. This movement marked an end to a two-day decline for Japanese stocks, diverging from Wall Street's losses. The shift occurred as recent comments from U.S. Federal Reserve Chair Jerome Powell bolstered expectations for future interest rate reductions. Concurrently, market participants kept a close watch on the evolving trade relationship between the United States and China, following U.S. President Donald Trump's threat of an embargo on cooking oil, which came as a retaliatory move against Beijing's soybean ban. Domestically, there remains uncertainty concerning the political landscape, as questions loom over whether Sanae Takaichi, leader of the Liberal Democratic Party known for her support of expansionary economic policies, will ascend to the prime ministerial position after the coalition's split with Komeito. Among notable stock movements, SoftBank Group increased by 2.4%, Advantest saw a rise of 1.6%, Sanrio surged by 5.3%, Fujikura grew by 1.4%, and Mitsubishi Heavy Industries gained 2.4%.