Nikkei rises, boosted by the rise of US stocks, and halts the 4-session decline

Japan’s Nikkei index halted a four-session losing streak on Thursday, boosted by a rally in US stocks on Wednesday after the Federal Reserve raised interest rates by 75 basis points as expected, but a bleak outlook for the global economy amid continued risks related to sharp monetary policy tightening affected investors. Stocks are largely off their highs in early trading.
The Nikkei closed up 0.4% at 26,431.20 points, recovering from its lowest closing level since May 12, which was recorded on Wednesday, and traders said: Profit-taking operations began as soon as it approached the moral support level at 27000 points, and the broader Topix index increased 0.64% to 1867.81 points.
Among the 225 stocks on the Nikkei index, 167 rose and 51 fell, while six stocks did not witness any change. The share of Fast Retailing, owner of the Uniqlo brand of clothing, rose 1.44%, the Toyota Motor share jumped 2.88%, and the Sony Group rose 1.53%.
The US Standard & Poor’s index rose 1.45% last night, but it is expected to give up some of its gains on Thursday.
Federal Reserve Chairman Jerome Powell said a 75 basis point rate hike seemed the best thing to do during this meeting, but added that such a hike, the largest since 1994, was unlikely to become common. Tightening of monetary policy may lead to an increase in unemployment rates.
(Archyde.com)