Japan stocks rise for third day as US CPI cements rate-cut view

Japanese stocks rose for a third day on strengthening market sentiment after US inflation data cemented expectations that the Federal Reserve will cut rates next week for the first time this year.

The Topix Index rose 0.5% to 3,162.84 as of 9:19 a.m. Tokyo time. Sony Group Corp. contributed the most to the increase, adding 1.2% Out of 1,675 stocks in the index, 963 rose and 619 fell, while 93 were unchanged.

The Nikkei 225 Stock Average advanced 0.7% to 44,678.12. Gains in technology stocks in the US point to buying of AI-related shares in Japan. The expiration of options and futures contracts on the Nikkei 225 Stock Average on Friday in the so-called special quotation settlement is also a factor for the market.

“With moderate growth seen in US CPI and the breach of the previous upper bound in US jobless claims, expectations for a rate cut at next week’s FOMC are even stronger,” said Nobuhiko Kuramochi, vice president of investment adviser Parasol Co. In Japan, AI-related shares are likely to continue rising, following strength in US technology stocks, he added.

ADVANCERS

Anritsu (6754) +12%; Anritsu Shares Up 9.5%, Most in 19 Weeks; Trading Volume Surges

Mandom (4917) +9.9%

Kamakura Shinsho (6184) +7.9%

DECLINERS

Heroz (4382) -11%

Digital Holdings Inc (2389) -8.4%; Hakuhodo Offers 1,970 Yen/Share For Digital Holdings (Sept. 11)

CellSource (4880) -5.8%

INSIGHTS

The MSCI AC Asia Pacific Index was up 0.4%

Topix Index is up 14% year-to-date, vs. MSCI AC Asia Pacific Index up 21%

Topix Index members are trading at 16.0 times their estimated earnings for the next 12 months

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