The Japanese Nikkei 225 index (JP225) is up by 1.50% to 38,500 points, extending its dynamic rebound after a record sell-off at the beginning of August. The rally in Japanese stocks is supported by expectations of an interest rate cut in the USA. The prospect of a Fed pivot is driving investors' appetite for riskier assets.
Today, gains in the Japanese index are seen across all sectors, supported by an exceptionally weak yen. However, in recent weeks, smaller companies focused on the domestic market have been achieving the best returns, benefiting from a strong yen. Sectors of interest among investors mainly include steel producers, paper and pulp manufacturers, and IT software suppliers. The Topix Pulp & Paper index, which includes companies from the paper sector, is up by more than 2.30% today.
Such a strong rebound in recent weeks on the Nikkei 225 index is also supported by the BOJ. Following the situation at the beginning of August, the central bank assured markets that interest rates would not be raised if the situation did not stabilize. Currently, the market expects less than 10 basis point rate hike this year.
JP225 (D1 interval)
Today, the Japanese index is gaining 1.50% to 38,500 points, pushing the total rebound up to 26.50% from the lows of 30,600 points established at the beginning of August.

Source: xStation 5
Daily summary: Indices and crypto decline amid rising oil prices 🚩 Gold and the US dollar move higher
Oil surges 11% amid escalating Middle-East conflict 📈VIX gains driven by fear on Wall Street
BREAKING: Iran signals Europe will be 'a legitimate target' if EU joins war
Wall Street tries to stop the deeper decline 🗽Marvell Technology jumps 10%