(Seoul=Yonhap Infomax) Si Yoon Yoon – On November 26, Japan’s major stock indices opened higher, buoyed by expectations of interest rate cuts from the US Federal Reserve (Fed).


As of 09:12 AM local time, the Nikkei 225, which is heavily weighted toward large exporters, was trading at 49,091.11, up 431.59 points, or 0.89%, from the previous session.

The TOPIX index rose 30.53 points, or 0.93%, to 3,321.42.


The Nikkei’s gains followed a rally on Wall Street, where optimism over potential Fed rate cuts drove buying interest. Overnight, the Dow Jones Industrial Average climbed for a third consecutive session, closing up 1.43% at 47,112.45.

Weaker-than-expected US retail sales for September and a softer November consumer confidence index further fueled expectations for Fed rate cuts, providing additional support for equities.


Market sentiment was also bolstered by speculation that the next Fed chair could align with the US administration’s policy stance and move toward rate reductions.


In Tokyo, attention is focused on SoftBank Group Corp. (TSE:9984), a major contributor to the Nikkei. The stock’s performance is closely watched after a sharp decline in the previous afternoon triggered an intraday reversal in the Nikkei, raising caution at higher price levels.

Resistance has recently emerged just below the 50,000 mark on the Nikkei, increasing the likelihood of profit-taking in the near term.


Separately, Japanese Prime Minister Sanae Takaichi is scheduled to hold her first debate with leaders of four opposition parties since taking office. Key topics will include economic policy, Japan-China relations, and a proposed reduction in the number of seats in the House of Representatives.

The Ministry of Finance will auction 40-year government bonds, while the US Federal Reserve’s Beige Book, an economic conditions report, is set for release later today.


As of now, the dollar-yen exchange rate is trading at 156.150 yen, up 0.03% from the previous day.

syyoon@yna.co.kr

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