From Investing.com:

Japan’s Nikkei 225 index reached a record high, climbing 0.6% to 40,499.0 points in early trading on Thursday. The surge was supported by speculation on Bank of Japan policy changes and a shift in focus from technology to industrial and financial stocks.

Heavyweight bank stocks like Kawasaki Heavy Industries and Sumitomo Mitsui Financial saw significant gains, helping to drive the Nikkei’s rally. The positive momentum was fueled by hints from Federal Reserve Chair Jerome Powell that interest rates could be cut in 2024.

In response to Powell’s comments, U.S. stock indexes closed higher, which further boosted Japanese stocks. Mitsubishi UFJ Financial Group and Resona Holdings were among the banks that surged on expectations of an end to the ultra-low interest rate regime by the Bank of Japan.

Official data revealed a 2% rise in Japanese wages in January, surpassing expectations. This news, coupled with other positive economic indicators, increases the likelihood of the BOJ raising interest rates for the first time since 2007 as early as March or April in 2024.



Read more at Investing.com: Japan’s Nikkei index hits record high on US rate hopes By Investing.com