Japanese shares climb on bets Fed to hold rates steady; Topix poised for record close

TOKYO: Japan’s Nikkei share gauge climbed on Friday, extending a weekly advance, after softer US producer prices eased pressure for a near-term Federal Reserve interest rate hike and supported risk appetite.

The benchmark Nikkei 225 rose 0.85% to 68,889.01 by the midday break, set for a 5% gain for the week.

The broader Topix gained 0.69% to 4,204.99, poised for a record high close.

US stocks rallied overnight after data showed July producer prices were unchanged, reinforcing expectations the Fed will hold rates steady next month.

The S&P 500 and the Nasdaq both closed at record highs.

“We are seeing a trend where the rise in US share prices is spilling over into Japan,” said Wataru Akiyama, an equities strategist at Nomura Securities.

“Factors such as lower crude oil prices and waning expectations for an early interest rate hike in the US due to slowing inflation are positive for the Japanese market as well.”

There were 145 advancers on the Nikkei 225 against 77 decliners and one unchanged.

The largest percentage gainers in the index were Shift, up 6.74%, followed by Nintendo, 6.59% higher, and Sony Group, which gained 5.35%.

The largest losers were Isetan Mitsukoshi Holdings, down 5.25%, set for its steepest one-day fall since December, followed by Ibiden, 4.08% lower, and Chugai Pharmaceutical, which lost 3.75%.