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Nikkei 225 Rises Amid Asian Market Optimism and Fed Rate Hold

Date: 08-may-2025 | By: Nuztrend Team

Nikkei 225 Rises Amid Asian Market Optimism and Fed Rate Hold

Image By Lombroso - Own work, CC BY-SA 4.0, Link

Japan’s benchmark Nikkei 225 index rose by 0.2% on Thursday morning, reaching 36,863.15 points. This modest gain reflects growing investor optimism across Asian markets, mirroring Wall Street’s upward trend after the U.S. Federal Reserve left interest rates unchanged.

Asian Markets Follow Wall Street’s Lead

The Fed’s decision to hold rates steady, paired with easing concerns over inflation, boosted investor sentiment globally. Other major Asian indices, including the Hang Seng and Shanghai Composite, also reported gains, reinforcing a cautiously optimistic outlook.

Sector Highlights in Japan

  • Technology stocks: Continued to lead gains amid AI sector optimism.
  • Exporters: Slightly buoyed by a weakening yen against the U.S. dollar.
  • Banking: Remained flat as rate hike expectations softened.

What’s Next for the Nikkei?

Analysts believe the index could see further support if inflation data from the U.S. and Japan show signs of cooling. However, geopolitical uncertainties and domestic economic data will remain key indicators for investors going forward.

Disclaimer: This article is based on publicly available information from various online sources. We do not claim absolute accuracy or completeness. Readers are advised to cross-check facts independently before forming conclusions.

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