The Nikkei 225 index rose 1.3% to close at 43,275 on Wednesday (August 13), while the Topix index rose 0.83% to 3,092. Both benchmark indexes set new record highs, extending positive sentiment following the overnight Wall Street rally.

This rise was supported by US inflation data, which reinforced expectations for a Federal Reserve interest rate cut next month, along with a solid Japanese corporate earnings season. The combination of the two maintained buying momentum in large-cap stocks.

Domestically, manufacturer sentiment improved for the second consecutive month in August, following the conclusion of a trade agreement with Washington. The agreement lowered US tariffs on cars and other goods to 15% in exchange for a US$550 billion Japanese investment package, which is expected to strengthen trade and investment flows.

On the price front, Japanese producer inflation slowed to an 11-month low in July, signaling easing cost pressures amid higher US tariffs. This decline in input costs is expected to boost corporate margins in the coming quarters.

Sector-wise, several stocks performed positively: Sanrio surged 8.6%, Mitsubishi Heavy rose 3.8%, Advantest rose 5.4%, Tokyo Electric Power rose 7.1%, and Sony Group rose 3.5%. The performance of these issuers contributed to the broad rally on the Tokyo Stock Exchange. (alg)

Source: Newsmaker.id