Japan's Nikkei jumps as Wall Street tech rally lifts mood
EWJ•Japan's Nikkei 225 rose 1.34% to 64,117.58 in morning trade after technology shares led a Wall Street rally; the Topix gained 0.39% to 4,012.81. Investors also awaited the Federal Reserve's rate decision later Wednesday.
1. Japanese shares advance
The Nikkei 225 climbed 1.34% to 64,117.58 in morning trade, while the broader Topix gained 0.39% to 4,012.81. Chip-related stocks Disco and Screen Holdings rose 3.67% and 3.46%, respectively, among the Nikkei's top gainers.
2. Wall Street and rate decision
The S&P 500 rose 0.60% and the Nasdaq gained 1.18% on Tuesday, with technology leading sector gains and energy lagging. Investors looked ahead to the Federal Open Market Committee's rate decision, due later Wednesday; markets were pricing in a hold and a high probability of a December hike.
3. Market breadth and risks
There were 109 advancers on the Nikkei 225 against 93 decliners. Crude prices fell overnight, while the US-Israeli war with Iran and security risks around the Strait of Hormuz remained in focus. Sony Financial Group senior economist Takayuki Miyajima said AI and chip stocks were likely to be bought after US tech gains, but investors also wanted to see the FOMC outcome and were likely to take a wait-and-see stance ahead of major Japanese and US earnings.
