Stock Market Update: Nikkei Share Average Hits One-Month High Following U.S. Inflation Data

The Nikkei share average soared to its highest level in a month on Thursday, driven by a surge in technology shares following positive global market trends. The U.S. CPI report showing lower-than-expected inflation in April spurred investor optimism, with expectations rising for a potential rate cut by the Federal Reserve in September.

Wall Street’s record high closing on Wednesday fueled positive sentiment in Asian markets, with the Nikkei closing up 1.39% at 38,920.26, hitting its highest level since April 15. Technology stocks like Tokyo Electron and Advantest led the gains, with chip-related shares adding significant points to the index’s rise.

Despite the overall uptrend, some export-related firms felt the pressure from the yen’s appreciation post-CPI release. Companies like Toyota Motor saw a slight decline in their shares, impacting the broader Topix index, which closed up only 0.24% at 2,737.54.

On the individual stock front, Fast Retailing, the parent company of Uniqlo, saw a 1.6% increase, while Recruit Holdings surged by 9.1% on positive revenue news. However, Mitsubishi UFJ Financial Group faced a 4.3% drop after projecting modest profit growth for the current financial year.

With the earnings season wrapping up and investors on the lookout for the next market catalyst, the Nikkei’s performance reflects the ongoing volatility in global markets amid economic uncertainties. Investors will be closely monitoring further developments and policy decisions in the coming months.