Key points:
Japan’s Nikkei started Thursday on a positive note, gaining 0.3% to reach 39,353.05 by the midday break, following the bullish tone set by Wall Street.
Early trading saw the index approach 39,616.59 before investors began booking profits, which trimmed gains. The broader Topix also followed suit, climbing 0.22% to 2,713.08.
See: Nikkei 225 is consolidating near 39,375 after reaching a recent high of 39,708 on the VT Markets app.
Wall Street’s performance on Wednesday lent support to Japanese stocks, with the S&P 500 and Dow Jones both hitting record closing highs.
The optimism followed the release of the Federal Reserve’s meeting minutes, which hinted at continued economic resilience, and the anticipation of inflation data due later in the week.
This backdrop created a favourable environment for Japanese equities, particularly those in the technology and consumer sectors.
Tech-heavy stocks, including SoftBank Group, which rose 3.27%, provided much of the upward momentum.
The company has been buoyed by the broader global appetite for semiconductor and tech-related assets, echoing Wall Street’s positive semiconductor index performance.
Fast Retailing, owner of the Uniqlo brand, added 0.85%, contributing to the index’s rise. Camera manufacturer Nikon surged 3.32%, reflecting optimism about potential growth in its sector.
However, some profit-taking emerged throughout the session, narrowing the initial gains.
Traders remain cautious ahead of the U.S. Consumer Price Index (CPI) inflation report, which could influence broader market sentiment and impact Japanese equities.
In case you missed it: Nikkei Retreats as U.S. Yields Rise
Among the 225 stocks on the Nikkei, 147 rose while 77 declined, with one remaining flat.
While Wall Street’s strong finish continues to support the Nikkei, traders remain cautious, keeping an eye on key economic data that could affect future market movements.
We anticipate steady but limited gains in the coming sessions, particularly as the market awaits further guidance from the U.S.
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