Tokyo stocks rally on Fed rate cut

Tokyo’s stock market closed higher on Thursday, driven by a weaker yen and tempered expectations for further aggressive interest rate cuts by the US Federal Reserve.

The benchmark Nikkei 225 index gained 2.13 per cent, closing at 37,155.33, while the broader Topix index rose 2.01 per cent to 2,616.87.

The Federal Reserve’s decision to cut its benchmark interest rate by 50 basis points on Wednesday was met with positive sentiment in the market.

However, investors focused on Fed Chair Jerome Powell’s comments that the move should not be seen as a signal for more substantial future cuts.

Attribution: Xinhua

Subediting: M. S. Salama