TOKYO: Japan’s Nikkei share average rose for a second straight session on Monday, led by tech shares as the domestic market reacted to optimism for looser monetary policy in the US
The Nikkei 225 Index gained 0.4 percent to close at 42,807.82. The broader Topix added just under 0.2 percent.
SoftBank Group and chip-testing equipment maker Advantest were among the biggest contributors to the Nikkei’s advance, climbing 3.5 percent and 1.1 percent, respectively.
In a closely-watched speech at the Federal Reserve’s annual Jackson Hole symposium on Friday, the central bank’s Chair, Jerome Powell, signalled the possibility of a rate cut next month.
Going in the other direction, Bank of Japan Governor Kazuo Ueda highlighted wage growth that is feeding into conditions for a resumption of interest rate increases.
The divergence in the central bank’s policy led to a surge in the yen, crimping revenue prospects for Japanese exporters.
Increasing prospects for a US rate cut acted as tailwind for tech stocks on Wall Street and in Japan, said Nomura strategist Fumika Shimizu.
“As a result, Japanese semiconductor-related stocks are also showing strength and leading the market,” Shimizu said.
“There is a possibility that the recent slight upward trend in the yen is weighing on the market.”
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