According to Jinshi, Japan's Nikkei 225 index rose for four consecutive days, setting a record for the longest winning streak since March this year, and the prospect of a possible interest rate cut by the Federal Reserve boosted technology stocks. As of 11:20 a.m. local time, the Topix index rose 0.1% to 2,860.52 points. The Nikkei index rose 0.8% to 40,390.43 points. Mitsubishi Heavy Industries contributed the most to the Topix index's gains, rising 5.7%. Among the 2,137 constituent stocks, 1,112 rose, 906 fell, and 119 were flat. The Philadelphia Stock Exchange Semiconductor Index rose 1.2% overnight.
Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Asset Management, said the Nikkei 225 and Topix are no longer necessarily in line, with the Nikkei "quite a reflection of the movement of U.S. high-tech stocks." Mitsushige Akino, president of asset management firm Ichiyoshi, said the Nikkei 225's breakout above 40,000 was unexpected and the market could strengthen as bears remain on the sidelines. Federal Reserve Chairman Powell said yesterday that the latest data showed inflation was returning to a downward trajectory, but he stressed that officials needed more evidence before cutting interest rates.