Nikkei Ends at Nearly 3-mth High after Wall Street Gains

Reuters

15:56 JST, March 3, 2023

TOKYO (Reuters) — Japan’s Nikkei index closed at a nearly three-month high on Friday after Wall Street finished higher overnight, with Fast Retailing 9983.T providing the biggest boost on robust monthly same-store sales at its Uniqlo brand.

The Nikkei .N225 rose 1.56% to close at 27,927.47, its highest level since Dec. 15, and marked the sharpest daily gain since Jan. 18. The index rose 1.73% in the week.

The broader Topix .TOPX rose 1.25% to 2,019.52, adding 1.57% in the week.

Gains in Japanese shares are justified because they benefit from a recovery in China’s economy. Chinese tourists to Japan would be a support for Japan’s economy as well, said Jun Morita, general manager of the research department at Chibagin Asset Management.

But today’s rise might be too much. And also, Wall Street was too strong overnight. Investors might have been too optimistic about the outlook for U.S. interest rates.