Japan's Nikkei closes above 45,000 for first time on tech boost, Fed decision
[TOKYO] Japan’s Nikkei share closed above 45,000 for the first time on Thursday (Sep 18), underpinned by technology shares, as optimism swept into the market following the US Federal Reserve’s widely anticipated 25-basis-point interest rate cut.
The Nikkei 225 Index jumped 1.15 per cent to close at 45,303.43, and also set an intraday record of 45,508.67, surpassing the previous high set earlier this week. The broader Topix recovered from an early dip to advance 0.4 per cent.
Global markets have been on tenterhooks awaiting a rate cut from the US central bank and signals of further stimulus for the world’s biggest economy that is a destination for much of Japan’s exports.
The Dow index of blue-chip US shares finished higher, while the yen reversed an initial surge after the Federal Open Market Committee’s decision, which projected two additional cuts this year.
“The Nikkei started higher today, buoyed by the relief following the smooth passage of last night’s FOMC meeting, the Dow’s rebound, and ongoing yen depreciation,” said Nomura strategist Maki Sawada.
“The 45,000 level is indeed a psychological threshold, and after breaching it, the environment seems conducive to profit-taking.”
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Trader focus has now shifted to the Bank of Japan’s two-day meeting, which concludes on Friday. While policymakers are widely expected to stand pat on key rates, markets will be watching closely for any signals on when the central bank might resume rate hikes as part of its long-term normalisation strategy.
There were 129 advancers on the Nikkei index against 94 decliners.
Semiconductor-supplier Resonac Holdings led gains in the Nikkei with an 11.7 per cent surge, while chip heavyweights Advantest and Tokyo Electron both jumped about 5 per cent.
The largest losers were utilities, with Tokyo Electric Power dropping 7.7 per cent and Tokyo Gas shedding 5.2 per cent. REUTERS
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