The Japanese stock market saw a robust recovery on Thursday, reversing a brief pause in its streak of gains. This rebound came a day after the market ended a four-day upward trend, during which the Nikkei 225 index had surged by over 1,430 points, or 3.2 percent. As of the latest session, the Nikkei 225 stood at approximately 45,303.43, showing potential for further gains into Friday.
Global market sentiment remains optimistic, especially across Asian equities, propelled largely by technology stocks. This positive outlook follows increases in European and U.S. markets, suggesting a similar upward trajectory for the Asian bourses.
On Thursday, the Nikkei experienced significant upward movement, primarily driven by strong performances in financial and technology sectors, despite a dip in automobile stocks. The index improved by 513.05 points, or 1.15 percent, after traversing a range between 44,815.40 and 45,508.67 during trading.
In individual stock performances, Nissan Motor saw a decline of 1.41 percent, while Mazda Motor fell by 1.00 percent. Other automobile giants also faced setbacks: Toyota Motor decreased by 0.34 percent, Honda Motor dropped 1.03 percent, and Softbank Group climbed 1.08 percent. Financial institutions showed a mixed bag, with Mitsubishi UFJ Financial gaining 0.11 percent, whereas Mizuho Financial dipped by 0.29 percent. Notably, Sony Group rallied an impressive 3.89 percent, and Panasonic Holdings surged by 2.31 percent.
The momentum from Wall Street offered a firm backdrop, as major U.S. indices opened positively on Thursday and maintained their upward shift throughout the trading day. The Dow Jones Industrial Average rose by 124.10 points or 0.27 percent to close at 46,142.42. The tech-heavy NASDAQ saw a notable increase, rallying 209.40 points or 0.94 percent, ending at 22,470.72, while the S&P 500 gained 31.61 points, or 0.48 percent, to finish at 6,631.96. A key contributor to this upward trend was Intel, which surged by 22.8 percent following news of a significant collaboration with Nvidia aimed at co-developing customized data center and PC products.
On the economic front, U.S. initial jobless claims saw a greater-than-expected decrease last week, while the Conference Board reported a more considerable than anticipated drop in its index of leading U.S. economic indicators for August.
In commodities, crude oil prices fell on Thursday following hints from the U.S. Federal Reserve regarding a potential slowdown in the American economy. West Texas Intermediate crude for October delivery shed $0.46, or 0.72 percent, settling at $63.59 per barrel.
Looking ahead, all eyes are on the Bank of Japan, which is concluding its monetary policy meeting, with expectations that it will maintain its benchmark lending rate at 0.50 percent. Additionally, upcoming data on consumer prices for August is anticipated, following July’s reported inflation of 0.1 percent month-over-month and 3.1 percent year-over-year, with core CPI reflecting similar increases.
