Japan’s Nikkei rises to intraday record on tech boost, Fed rate decision

Japan’s Nikkei share average rose to an intraday record high on Thursday, underpinned by technology shares, as optimism swept into the market following the U.S. Federal Reserve’s widely anticipated 25-basis-point interest rate cut.

The Nikkei 225 Index climbed 0.7% to 45,113.68, reaching an intraday peak of 45,144.62 and surpassing the previous high set earlier this week. Meanwhile, the broader Topix recovered from an early dip to advance 0.3%.

Global markets have been on tenterhooks awaiting a rate cut from the U.S. central bank and signals of further stimulus for the world’s biggest economy that is a destination for much of Japan’s exports.

The Dow index of blue-chip U.S. shares finished higher, while the yen reversed an initial surge after the Federal Open Market Committee’s decision, which projected two additional cuts this year.

“The Nikkei started higher today, buoyed by the relief following the smooth passage of last night’s FOMC meeting, the Dow’s rebound, and ongoing yen depreciation,” said Nomura strategist Maki Sawada.

“The 45,000 level is indeed a psychological threshold, and after breaching it, the environment seems conducive to profit-taking.”Trader focus has now shifted to the upcoming two-day Bank of Japan meeting, which concludes on Friday. While policymakers are widely expected to stand pat on key rates, markets will be watching closely for any signals on when the central bank might resume rate hikes as part of its long-term normalization strategy.There were 139 advancers on the Nikkei against 83 decliners, with the top gainers all semiconductor-related heavyweights. Resonac Holdings jumped 10.5%, followed by Screen Holdings, which soared 4.6%, and Tokyo Electron up 3.6%.

The largest losers were utilities, with Tokyo Electric Power dropping 4.7% and Tokyo Gas shedding 4.2%.