Japan Shares Close Higher Thanks to Wall Street Gains

Japanese stocks rose on Monday, August 30, due to a rebound on Wall Street, after US Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole forum eased market concerns about a rapid withdrawal of stimulus measures due to the epidemic.

The broader TOPIX index rose near the close to the end of the session, rising to 1950.14 points, equivalent to an increase of 1.11% to a peak of more than two weeks.

The Nikkei index advanced by 0.54% to 27,789.29 points but did not reach the level of 27921.55 it reached earlier in trading.

Powell’s tone sounded less strident than many Fed officials on Friday and he declined to paint a clearer picture of when to reduce stimulus or raise interest rates, sending the S&P 500 and Nasdaq indexes peaking.

A rise in commodities put its related sub-sectors in two of the top three positions on TOPIX, led by a 4.28% jump for Japanese iron and steel companies.