10.08.202600:48:08UTC+00Japanese Shares Track Wall Street Higher

The Nikkei 225 Index rose 1.4% to above 66,500, while the broader Topix Index gained 0.5% to 4,095 on Monday, with Japanese equities hitting multi-week highs as they tracked Wall Street’s advance. The move followed weaker-than-expected US employment data, which tempered expectations of an imminent interest rate hike by the Federal Reserve.

Investors also kept a close watch on developments in the Middle East, after Iran denied holding direct talks with the US, despite Washington’s assertions that a deal was near.

On the domestic front, data showed that Japan’s current account surplus narrowed in June. Strong exports of AI-related electronics were offset by higher imports, driven largely by increased crude oil purchases.

Technology and AI-related stocks led the advance, with Fujikura climbing 5.1%, Furukawa Electric 6.5%, Advantest 3.4%, Ibiden 9.3% and Tokyo Electron 3.2%.