Japanese stock markets bounced back on Thursday, ending a two-day losing streak. The Nikkei 225 Index climbed 0.6% to surpass 38,300 points, while the broader Topix Index rose 1% to reach 2,690 points. Investors showed renewed confidence and took the opportunity to buy shares at lower prices.
Market Eyes 60% Chance for Japan Rate Hike in December
Despite the gains, some caution remained as the Japanese yen strengthened to its highest level in over five weeks on Wednesday. This surge was fueled by speculation that the Bank of Japan might raise interest rates again as early as next month. Market analysts now estimate a 60% chance of a 0.25% interest rate hike in December, up from a 50% probability a week earlier.
Investors are also closely monitoring Tokyo’s upcoming inflation data, set to be released on Friday, which could provide further insights into the central bank’s monetary policy plans.
Major companies that saw significant stock gains included Disco (+1%), Tokyo Electron (+7%), Screen Holdings (+7.1%), Nintendo (+1.8%), and Toyota Motor (+1.3%).