Japan’s Nikkei Surges Past 43,000
(MENAFN) Japan’s Nikkei stock benchmark closed above the 43,000 level for the second consecutive day on Wednesday, reaching a historic peak.
The rally was fueled by lower-than-expected inflation figures from the United States, which raised investor hopes for a stronger American economy and the possibility of an earlier interest rate cut by the Federal Reserve.
The leading index advanced by 1.3%, climbing 556.50 points to end the day at 43,274.67.
This marked a continued upward trajectory for Japanese equities in midweek trading.
Top-performing sectors on the Prime Market included air travel, nonferrous metals, and service-related industries, as reported by a news agency.
Meanwhile, the yen—which is often viewed as a "safe-haven" currency—lost ground as stock markets climbed and risk appetite among investors grew.
This shift in sentiment briefly pushed the US dollar into the lower 148-yen range during trading in Tokyo.
The encouraging US inflation numbers for July bolstered expectations that the Federal Reserve could lower interest rates as early as September.
This contributed to the Nikkei’s fifth straight day of gains.
However, after a cumulative rise of more than 2,400 points over the past five sessions, some investors opted to "lock in profits," prompting the Nikkei to pare back some of its intraday gains.
At one stage, the index had surged by more than 700 points.
According to official data from the Bureau of Labor Statistics, the US annual inflation rate stood at 2.7% in July, falling short of the projected 2.8%.
The monthly rate also held steady at 0.2%, reinforcing market sentiment that inflation is cooling.
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