Japanese stocks saw a boost, with the Nikkei climbing 0.3% to 39,197.57 and the Topix rising 0.4% to 2,738.43. This positive movement was fuelled by Wall Street’s record highs, optimistic economic forecasts, and strong US job data, which helped elevate market sentiment. While the Dow slipped slightly, stocks such as Fast Retailing and SoftBank Group gained 1% and 2.2% respectively, benefitting from the overall upbeat mood.
Domestic economic figures also provided support, as revised data indicated Japan’s economy grew faster than anticipated in the July-September period, with stronger capital investment and exports. This contributed to a surge in Rakuten Group’s shares, which jumped 7% following the announcement of a new shareholder benefits programme. Despite this, some semiconductor stocks experienced profit-taking, with Advantest dropping 4.5% and Tokyo Electron declining 0.4%.
Looking ahead, investors are focused on key meetings from the Federal Reserve and the Bank of Japan, both of which are expected to influence market direction in the coming weeks. Amid this uncertainty, stocks like Sony Group, Bandai Namco Holdings, and Recruit Holdings saw gains of 3.3%, 2.9%, and 2.6% respectively, reflecting optimism within the market.
Japan’s market rally reflects a combination of positive external factors from Wall Street and stronger domestic economic performance. As global markets adjust to changing monetary policies, Japan’s economic resilience and new corporate developments, such as Rakuten’s initiatives, may contribute to greater regional stability and further investment opportunities in Asia.
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.
