The Nikkei rose at the close on Wednesday (October 15th), led by the property, banking, and textile sectors. Sentiment improved as the market read the Fed's increasingly dovish signals—balance sheet reduction is likely to stop soon—resulting in lower yields and recovering risk appetite. Rotation flowed to domestic issuers benefiting from consumption and stable funding costs; thus, retail and banking were the driving forces. A slightly stronger yen restrained exporters but boosted interest in locally market-oriented stocks.

In commodities, oil tended to weaken due to the narrative of a supply surplus and weak demand, while gold strengthened on expectations of interest rate cuts and the need for hedging. A weaker dollar and a stronger yen underscored the global cautious tone. So, although the Nikkei rose, volatility indicators also increased—a sign that the rally is still overshadowed by the tug-of-war of macro and geopolitical news. (az)

Source: Newsmaker.id