Japan’s Nikkei share average climbed more than 1% on Monday, reaching 39,000 points for the first time in a month, buoyed by a record closing high on Wall Street that continued to bolster positive investor sentiment.
By the midday break, the Nikkei had risen 1.44% to 39,346.92, marking the first time it had entered the psychologically significant 39,000-point range since 15 April.
The broader Topix index also saw an increase, rising 1.21% to 2,778.89.
Global market sentiment was bolstered by higher prospects of US rate cuts this year, following a milder inflation report last week. This led several Wall Street indexes to secure weekly gains, which in turn provided a favourable environment for Japanese equities. “Stock prices have been supported as rate cut expectations are being revived,” commented Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors.