Japan Stock Market May Extend Winning Streak

(RTTNews) - The Japanese stock market has moved higher in back-to-back sessions, rallying more than 910 points or 2 percent in that span. The Nikkei 225 now sits just beneath the 44,375-point plateau and it may add to its winnings again on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The Nikkei finished sharply higher on Thursday following mixed performances from the financial shares, technology stocks and automobile producers.

For the day, the index jumped 534.83 points or 1.22 percent to finish at 44,372.50 after trading between 43,870.54 and 44,396.95. Among the actives, Nissan Motor climbed 1.07 percent, while Mazda Motor and Sony Group both shed 0.49 percent, Honda Motor and Toyota Motor both dropped 0.93 percent, Softbank Group skyrocketed 9.98 percent, Mitsubishi UFJ Financial tumbled 1.74 percent, Mizuho Financial retreated 1.63 percent, Sumitomo Mitsui Financial sank 0.92 percent, Mitsubishi Electric rallied 2.23 percent, Panasonic Holdings climbed 1.05 percent and Hitachi eased 0.07 percent.

The lead from Wall Street is positive as the major averages opened higher on Thursday and remained in the green throughout the trading day.

The Dow surged 617.08 points or 1.36 percent to finish at 46,108.00, while the NASDAQ rallied 157.01 points or 0.72 percent to end at 22,043.07 and the S&P 500 gained 55.43 points or 0.85 percent to close at 6,587.47.

The strength on Wall Street came amid a positive reaction to separate Labor Department reports on consumer price inflation and weekly jobless claims, further boosting the chances of a rate cut.

A closely watched Labor Department report showed U.S. consumer prices rose by slightly more than expected in August. Also, first-time claims for U.S. unemployment benefits unexpectedly increased last week.

Following the reports, CME Group's FedWatch Tool is currently indicating 94.8 percent chance the Federal Reserve will lower rates by a quarter-point next week and a slim 5.2 percent chance of a half- point rate cut.

Crude oil prices fell sharply on Thursday, triggered by the International Energy Agency's monthly report that boosted the supply estimate for 2025 and 2026, indicating a glut. West Texas Intermediate crude for October delivery sank $1.22 or 1.92 percent at $62.45 per barrel.