The Nikkei index closed at a two-month peak amid hopes of a slowdown in interest rate hikes in the US

Japan’s Nikkei index ended Thursday’s trading at its highest level in more than two months, tracking Wall Street, which posted overnight gains on hopes that the Federal Reserve will slow the pace of interest rate hikes.

The Nikkei index closed up 0.95 percent at 28,383.09 points, the highest level since September 13. The broader Topix index also jumped 1.21 percent to 2,018.80 points.

Major indices on Wall Street ended Wednesday night with strong gains, after the minutes of the November Fed meeting showed that the pace of interest rate hikes may slow soon.

The minutes of the meeting held on November 1 and 2, in which the reserve raised the main interest rate by 75 basis points for the fourth time in a row in an attempt to curb high inflation to its highest levels in decades, showed that officials largely agree that they can stop raising. Great interest and just to move smaller steps.

Chip-related heavyweights were the best performers on the Nikkei, with Tokyo Electron and Advantest jumping 3.55 and 4.56 percent, respectively.

The shipping companies index jumped 5.07 percent, leading gains among 33 sub-indices on the Tokyo Stock Exchange.

Nippon Yusen rose 6.05%, while Mitsui OSK Lines jumped 4%.