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Japanese Shares Rise as Wall Street Lead Lifts Risk Appetite

Japanese shares extend their rally, with the Nikkei 225 up 1.7% to above 69,400 and the Topix up 0.5% to 4,196, as subdued U.S. inflation data eases Fed hike expectations and tech stocks lead gains.

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5% to 4,196 on Friday, with Japanese shares extending their rally and following a strong lead from Wall Street as subdued US inflation data prompted traders to scale back expectations for a Federal Reserve rate hike in September. Markets are now pricing in around a 35% chance of a 25 basis point Fed rate hike in September, down from 55% a week earlier. Domestically, investors are speculating about a possible Bank of Japan rate hike in September or October amid concerns that a weak yen could add to inflationary pressures. 5%).

5% for the week, respectively.