Tuesday, 02 January 2024 12:17 GMT

Tokyo Stocks Close Friday with Gains


(MENAFN) Tokyo's financial markets closed Friday's session with substantial gains, propelled by investor enthusiasm following the Federal Reserve's third consecutive policy rate reduction.

The Nikkei Stock Average, comprising 225 issues, climbed 687.73 points to settle at 50,836.55—representing a 1.37 percent advance from Thursday's close.

The Topix index demonstrated even stronger performance, surging 66.59 points to reach 3,423.83, a 1.98 percent increase that established a new all-time closing record.

Market analysts attributed the widespread rally to overnight developments in U.S. markets, where the Dow Jones index achieved a record closing level. Trading activity saw nearly universal gains across sectors, with the Nikkei benchmark briefly exceeding a 900-point intraday spike.

Investor optimism centered on expectations that the Fed's most recent monetary policy adjustment would bolster U.S. economic stability, according to market observers.

Adding momentum to rate-cut expectations, disappointing U.S. employment figures released Thursday intensified market speculation that the Federal Reserve would maintain its accommodative monetary trajectory with additional rate reductions ahead.

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