TOKYO: Japan’s Nikkei share average finished at a two-month closing high on Thursday, tracking Wall Street’s strength, after an in-line US inflation report boosted expectations of a Federal Reserve interest rate cut next week.
The Nikkei climbed 1.21% in fourth straight session of gains to 39,849.14, its highest close since Oct. 15. The index crossed 40,000 for the first time since that day.
The broader Topix rose 0.86% to 2,773.03.
“The Nikkei was not able to keep the 40,000 level because investors sold stocks to book profits,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
“But the environment is positive for local equities because the yen seems to remain weak against the dollar even as the Fed is to cut rates and the Bank of Japan is to raise rates.”
Wall Street’s benchmark S&P 500 index rose on Wednesday and a rally in tech stocks lifted the Nasdaq above the 20,000-point milestone for the first time following the inflation report.
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