Japan's Nikkei index edged up 0.2% on Wednesday (December 23rd), reaching 50,519.41, following gains on Wall Street overnight. The rise was fueled by recently released US economic data, which painted a mixed picture but still showed resilience. Despite concerns about some indicators, solid employment data and a sharp rise in US corporate profits reinforced the view that the Federal Reserve is likely to keep interest rates unchanged at its upcoming January meeting.

Among the best-performing stocks on Japan's main index, Screen Holdings surged 7.4%, while Sumitomo Metal Mining rose 4.2%, and Japan Post Bank also gained 3.1%. The gains in these stocks boosted the Nikkei's upward movement amid positive global market sentiment.

The Japanese market's movement was influenced by global market sentiment, driven by investor confidence that the US economy remains strong despite some signs of uncertainty. Axel Rudolph, a senior analyst at IG, said in an email that while US economic data showed a mixed picture, there is still confidence that the US economy is resilient enough to avoid a sharp downturn.

Regarding currency movements, USD/JPY was recorded at 156.07, slightly down from 156.23 in New York on Tuesday. This indicates a slight correction in the dollar's exchange rate against the yen, although the US dollar remains supported by the prospect of stable monetary policy.

Market attention is currently focused on the Federal Reserve's policy decision, which is expected to keep interest rates steady following strong economic data and strengthening labor market indicators. Investors are hoping for more clues about the direction of US monetary policy, which will impact global markets.

Overall, the Nikkei recorded a steady increase, driven by positive influences from Wall Street and relatively strong US economic indicators, while Japanese markets strengthened, driven by blue-chip stocks and positive market sentiment. (asd)

Source: Bloomberg