(Bloomberg) -- Japanese stocks climbed, with the Nikkei 225 Stock Average gaining more than 3%, as a pause in the yen’s strengthening trend boosted exporters including technology companies and automakers.
The blue-chip gauge closed 3.4% higher, while the broader Topix gained 2.4%. Toyota Motor Corp. contributed the most to the Topix’s climb as the yen fell as much as 0.4% to 142.95 against the dollar. Banks including Mitsubishi UFJ Financial Group Inc. also rose after long-term Treasury yields gained.
“Concern over a stronger yen has eased as the market adjusted its expectations for a US rate cut to 25 basis points,” said Ikuo Mitsui, a fund manager at Aizawa Securities. An unexpected pick-up in US inflation in August reduced the odds of an outsize rate cut at the Federal Reserve’s meeting next week.
Semiconductor-related names like Tokyo Electron Ltd. and Disco Corp. were up more than 4%. Meanwhile, Seven & i Holdings Co. touched a record high since its 2005 listing, as Alimentation Couche-Tard Inc. is said to weigh a higher price in the takeover proposal for the Japanese convenience store operator.
Japanese stocks were close to oversold area as the relative strength index for both equity gauges approached 30 on Wednesday.
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