Japan’s Nikkei 225 index climbed more than 1% to a new record on Wednesday, closing above the 51,000 mark for the first time.
The gains in Tokyo were driven by a new trade agreement between the United States and Japan and sustained investor expectations for another interest rate cut by the US Federal Reserve.
Investor sentiment in Japan was lifted following the signing of a new framework on rare earths by US President Donald Trump and Japan’s Prime Minister Sanae Takaichi on Tuesday.
The meeting was the first between the two leaders since Takaichi assumed office.
Further support for the market came from growing certainty that the US central bank will continue its monetary easing.
Markets are pricing in nearly 100% odds that the Federal Open Market Committee will implement a second consecutive 25 basis point rate reduction, which would bring the federal funds rate to a target range of 3.75%-4.00%.
“If [Fed chair Jerome Powell] comes off dovish, bets for future Fed cuts will increase and provide more fuel to market momentum,” veteran investor Louis Navellier wrote in a note to clients.
Performance across the Asia-Pacific region
While Japanese equities reached new highs, performance in other major regional markets was mixed.
Australia’s S&P/ASX 200 index fell 0.16% after the release of new government data on inflation.
The Australian Bureau of Statistics reported that consumer prices rose 3.2% in the third quarter, the strongest increase in more than a year and above the 3% forecast from economists polled by Reuters.
Elsewhere, South Korea’s Kospi index rose 0.17%, while the mainland Chinese CSI 300 was up 0.37%. Financial markets in Hong Kong were closed for a public holiday.
The Asian trading session followed a record-setting day in the United States, where the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed at new highs.
Indian markets open with modest gains
In India, equity markets also started the day higher. The NSE Nifty 50 index rose 0.14% to 25,973 at the open, and the BSE Sensex jumped 149.16 points, gaining 0.18% to 84,777.31.
In early trading, companies such as Grasim Industries and Larsen & Toubro were among the top gainers, while Mahindra & Mahindra and Tata Motors were among the leading decliners.
The post Asia markets open: Nikkei hits 51,000 for the first time; Sensex jumps 100 points appeared first on Invezz
