TOKYO: Japan’s Nikkei share average closed at a more than 11-month high on Monday as investor risk appetite grew after a strong rally in US equities, driven by hopes for trade talks and Federal Reserve’s rate cuts.
The Nikkei rose 0.84% to close at 40,487.39, its highest closing level since July 17. The index narrowed its earlier gains as investors booked profits from the sharp gains of the index, which rose for a fifth straight session.
The broader Topix climbed 0.43% to 2,852.84.
A strategist at a domestic brokerage said a rally of US equities last week and hopes of Fed rate cuts, as well as easing tension in the Middle East, helped investors to turn “risk-on”.
“There are still uncertainties surrounding US tariff policy and geopolitical risks as well as the policy of central banks,” said Takeo Kamai, head of execution services at CLSA in Tokyo.
“But that has become a new normal. The Nikkei is strong enough to head towards the next milestone of around the 42,000 level,” he said.
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