The Tokyo Stock Exchange closed higher on Thursday, breaking a four-day losing streak. The mood was supported by higher closing conditions on Wall Street, where a sharp rate hike was positively received by the Federal Reserve. Investors are relieved that the US Federal Reserve is accelerating its fight against high inflation in the United States. The central bank raised interest rates by 0.75 percent. This is the largest tariff increase since 1994.
In Tokyo, the Nikkei closed at 26,431.20 points, up 0.4 percent from the Bank of Japan’s interest rate cut on Friday. Japanese exporters such as carmaker Toyota and technology group Sony rose 2.8 and 1.4 percent, respectively.
According to Japanese government figures, the country’s exports in May were up 15.8 percent from a year earlier. Imports grew by nearly 49 percent due to a sharp rise in energy prices, pushing the trade deficit further to an eight-year low.
Other stock markets in the Asian region showed a mixed picture. Cosby in Seoul rose 0.4 percent. Meanwhile the Shanghai key index and the Hong Kong Cheng index in Hong Kong lost 0.5 and 1.4 percent, respectively. All Ordinaries in Sydney fell 0.1 percent. Unemployment in Australia remained unchanged at 3.9 percent in May, giving the country’s central bank the opportunity to raise interest rates.
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