Nikkei Breaks Four-Day Loss Streak After US Rate Hike

The Tokyo stock exchange closed higher on Thursday, breaking a four-day loss series. The mood was supported by higher closing positions on Wall Street, where the sharp rate hike by the Federal Reserve was positively received.

 

Investors seem relieved that the US central bank is speeding up its fight against high inflation in the United States. The Fed raised the interest rate by 0.75 percentage points. It was the largest rate hike since 1994.

The Nikkei in Tokyo ended 0.4 percent higher at 26,431.20 points ahead of the Bank of Japan’s interest rate decision, scheduled for Friday. Major Japanese export companies such as car manufacturer Toyota and technology group Sony rose 2.8 and 1.4 percent.

Figures from the Japanese government showed that the country’s exports rose 15.8 percent in May compared to a year earlier. Imports showed record growth of almost 49 percent due to the sharp rise in energy prices, pushing the trade deficit further to its highest level in eight years.

The other stock markets in the Asian region showed a mixed picture. The Kospi in Seoul rose 0.4 percent. The main index in Shanghai and the Hang Seng index in Hong Kong lost 0.5 and 1.4 percent in the meantime.

The All Ordinaries in Sydney fell 0.1 percent. Unemployment in Australia remained unchanged at 3.9 percent in May, giving the country’s central bank room to continue raising interest rates.

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