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

Japan’s Nikkei share gauge experienced a rise on Friday, continuing a weekly upward trajectory, according to wire material. The index surged 0.85% to 68,889.01 by midday, with an anticipated 5% gain for the week. The Topix, a broader index, also gained 0.69% to 4,204.99, positioning itself for a record high close. US stocks had previously gained ground overnight, following data indicating that July producer prices remained unchanged, fueling expectations that the Federal Reserve would maintain interest rates steady in the coming month.

The S&P 500 and the Nasdaq both closed at record highs. Wataru Akiyama, an equities strategist at Nomura Securities, noted the trend of rising US share prices spilling over into Japan. He cited factors like lower crude oil prices and diminishing expectations for an early interest rate hike in the US, stemming from slowing inflation, as beneficial for the Japanese market.

On the Nikkei 225, there were 145 advancers against 77 decliners, with one index remaining unchanged. Shift led the gainers, surging 6.74%, followed by Nintendo, which increased by 6.59%, and Sony Group, which climbed 5.35%. Conversely, Isetan Mitsukoshi Holdings experienced the steepest one-day decline since December, falling 5.25%, while Ibiden dropped 4.08% and Chugai Pharmaceutical decreased 3.75%.