The Nikkei 225 Index advanced by 1.8% to close at 39,333, while the broader Topix Index increased 1.68% to 2,739 on Monday. This marks the third consecutive session of gains for Japanese shares, largely driven by a sharp decline in the yen, which has improved profit forecasts for the nation's export-heavy industries.
The yen's recent pressures stem from a stronger-than-expected US jobs rort, raising optimism that the Federal Reserve may successfully navigate a soft landing for the economy. Concurrently, key Japanese officials advised the Bank of Japan to exercise caution before implementing further interest rate hikes.
As investors prare for upcoming earnings rorts from major firms such as AEON, Fast Retailing, and Seven & I Holdings, all sectors are experiencing upward movements. Noteworthy gains were observed from major index contributors including Mitsubishi UFJ (+3.5%), Advantest (+3.1%), SoftBank Group (+2.2%), Toyota Motor (+2.3%), and Hitachi (+3.8%).
Since the start of 2024, the primary stock market index in Japan (JP225) has surged 5,581 points, translating to a remarkable 16.68% increase. Analysts project the index to reach approximately 36,800.24 points by the quarter's end, with expectations of a future trading level of around 32,141.98 points in 12 months.