Japan’s Nikkei Index Tops 43,000 for First Time
(MENAFN) Japan’s flagship stock index surged to historic heights Wednesday morning, breaching the 43,000 level for the first time ever in intraday trading, fueled by momentum from Wall Street and growing hopes for a U.S. interest rate cut.
The Nikkei 225, which tracks 225 leading companies listed on the Tokyo Stock Exchange, climbed sharply at the opening bell and was up 582.90 points, or 1.36%, from Tuesday’s close, reaching 43,301.07 by midday.
The gains weren't limited to the Nikkei. The broader Topix index also rose steadily, ending the morning session up 27.48 points, or 0.90%, at 3,093.85.
Analysts attributed the robust rally to optimism carried over from U.S. markets overnight. Weaker-than-expected inflation data from the United States reinforced investor bets that the Federal Reserve could move to lower interest rates as early as September.
Analysts said buying activity accelerated immediately after the market opened, driven by overnight gains on Wall Street and renewed investor optimism for a potential U.S. rate cut in September following softer inflation data. They also cautioned that the Nikkei may be showing signs of overheating after its rapid and aggressive climb.
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