Macro news
The Nikkei 225 broke through the 44,000 level for the first time, climbing as much as 1.2% to 44,185 before easing back slightly. The rally was underpinned by renewed optimism around trade developments and expectations of fresh government stimulus, which together boosted market sentiment.
Investor confidence was further lifted by political shifts in Japan. Following the resignation of Shigeru Ishiba, leadership contender Sanae Takaichi has emerged as a frontrunner. Markets view her as supportive of fiscal expansion and continued monetary easing, policies that are seen as positive for growth and asset prices.
On the trade front, Japan secured a notable breakthrough. According to the country’s chief negotiator, US tariffs on Japanese autos will be lowered by 16 September, clearing away uncertainty left after July’s agreement. The development is seen as a significant tailwind for Japan’s exporters and overall trade outlook.
Technology shares also played a leading role in driving the index higher. Chipmaker Advantest surged more than 7%, while other sector heavyweights such as Screen Holdings, Tokyo Electron, and Sony all advanced, tracking the strength of US tech stocks. Broader Asian equities were similarly buoyed, extending Wall Street’s gains as investors priced in a likely September rate cut from the Federal Reserve (Fed), with some even betting on a 50-basis-point move.
Nasdaq 100 capped by resistance
The Nasdaq 100’s recovery from its early September low has been, at least temporarily, stopped by Friday’s 23,860 high.
If bettered, the August record high at 23,969 may be reached as well.
Minor support below the 28 August high at 23,741 sits at the late July high at 23,589, both of which may be revisited as long as Friday’s high at 23,860 caps.
Were the late July high at 23,589 to give way, the technical picture would become more bearish with the 21 July high at 23,264 being back in sight, together with the August and current September lows at 23,242-to-22,959.