04.09.202600:32:11UTC+00Japanese Shares Rise as Fed Hike Bets Ease

The Nikkei 225 Index climbed 0.6% on Friday to move back above 64,500, breaking a four-day losing streak as traders dialed down expectations of a US Federal Reserve rate hike this month. Fed Governor Christopher Waller indicated he would support leaving rates unchanged if inflation continues to ease.

At the same time, markets are focused on the Bank of Japan’s September meeting amid speculation it may raise interest rates to curb inflationary pressures. Investors also kept a close eye on currency markets following sharp moves in the yen, which has strengthened by as much as 3% over the past two sessions.

Technology shares led Friday’s rebound, with solid advances from Kioxia Holdings (up 1.8%), SoftBank Group (up 5.8%), and Fujikura (up 1.2%). By contrast, financials and consumer names lagged, including Mitsubishi UFJ (down 1.1%) and Toyota Motor (down 0.6%).

Despite Friday’s gains, the Nikkei remains on course for a weekly loss of more than 2%, as higher oil prices and a recent rise in global bond yields have continued to pressure equities.