The Nikkei 225 Index rose 1.14% to close at 49,865 on Wednesday, recouping losses from earlier in the week and following gains on Wall Street amid expectations of further US Federal Reserve rate cuts. Risk appetite also improved as investors weighed the potential for a year-end rally in global equities. At home, caution persisted as markets assessed speculation that the Bank of Japan could raise rates this month. BOJ Governor Kazuo Ueda said the central bank would consider the pros and cons of a hike and act “as appropriate.” Technology stocks led the advance, with strong gains from SoftBank Group (6.4%), Advantest (5.3%), Fujikura (2.6%), Tokyo Electron (4.7%) and Lasertec (7.3%). In contrast, financial and consumer stocks mostly retreated, including Mitsubishi UFJ (-2.1%), Sumitomo Mitsui (-2.1%) and Toyota Motor (-1.3%).
