(MENAFN) Japan's Nikkei stock index surged Wednesday as technology heavyweights posted substantial gains, tracking overnight rallies on Wall Street driven by mounting anticipation of a U.S. Federal Reserve interest rate reduction at next week's policy meeting.

The 225-issue Nikkei Stock Average jumped 561.23 points, representing a 1.14 percent increase from Tuesday's close, to reach 49,864.68. Meanwhile, the broader Topix index slipped 6.74 points, or 0.20 percent, settling at 3,334.32.

Japan's benchmark 10-year government bond yield momentarily climbed to 1.89 percent—marking its highest point since June 2008. The U.S. dollar traded within a narrow band in the upper 155 yen range throughout Tokyo sessions due to limited fresh catalysts, currency dealers reported.

The Nikkei maintained positive momentum throughout the day, momentarily crossing the 50,000 threshold, propelled by heavyweight semiconductor and artificial intelligence-linked stocks mirroring gains posted by their American counterparts.

Market confidence received an additional boost from expectations surrounding further Fed monetary policy easing after U.S. President Donald Trump stated Tuesday that he would unveil the next Fed chair selection early next year, brokerage sources indicated.

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