Nikkei ends at record high for 2nd straight day

Japan Today

2 days ago

The Nikkei stock index closed above the 43,000 line to mark an all-time high for a second consecutive day on Wednesday, boosted by optimism about the U.S. economy amid speculation about an earlier than expected interest rate cut by the Federal Reserve.
The 225-issue Nikkei Stock Average gained 556.50 points, or 1.30 percent, from Tuesday at 43,274.67. The broader Topix index rose 25.54 points, or 0.83 percent, to 3,091.91, also closing at a record high.
On the top-tier Prime Market, notable gainers were air transportation, nonferrous metal and service issues.
The U.S. dollar briefly strengthened to the lower 148 yen range in Tokyo, as the yen, seen as a safe-haven asset, was sold as stocks rose and investor risk appetite grew, dealers said.
Stocks advanced for a fifth straight day, encouraged by overnight Wall Street gains as the lower-than-expected U.S. consumer price index data for July fueled hopes for a rate reduction by the Fed in September, brokers said.
"The latest CPI data did not heighten concerns about inflation," even after the United States started imposing higher tariffs on its imports, said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
"But recent employment-related data have raised concern about the U.S. economy and the Japanese market could be pressured if weak data like these are released repeatedly in the future," she said.
The Nikkei index climbed more than 700 points at one point, but trimmed some gains later in the day as investors locked in gains after surging over 2,400 points over the past five trading days.
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