Japan Bourse May Challenge 40,000-Point Level

(RTTNews) - The Japan stock market has moved higher in three straight sessions, collecting almost 1,250 points or 3.2 percent along the way. The Nikkei 225 now sits just above the 39,580-point plateau and it may add to its winnings on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Nikkei finished sharply higher on Thursday following gains from the financial shares and mixed performances from the automobile producers and technology stocks.

For the day, the index spiked 642.51 points or 1.65 percent to finish at 39,584.58 after trading between 39,056.14 and 39,615.59.

Among the actives, Nissan Motor climbed 1.04 percent, while Mazda Motor accelerated 1.91 percent, Toyota Motor dipped 0.16 percent, Honda Motor dropped 0.90 percent, Softbank Group surged 5.52 percent, Mitsubishi UFJ Financial collected 0.59 percent, Mizuho Financial added 0.50 percent, Sumitomo Mitsui Financial rose 0.33 percent, Mitsubishi Electric skidded 1.11 percent, Sony Group rallied 1.21 percent, Panasonic Holdings sank 0.63 percent and Hitachi advanced 0.91 percent.

The lead from Wall Street is positive as the major averages opened with mild gains on Thursday but continued to pick up steam throughout the day, ending at session highs and just shy of all-time highs.

The Dow jumped 404.41 points or 0.94 percent to finish at 43,386.84, while the NASDAQ rallied 194.36 points or 0.97 percent to close at 20,167.91 and the S&P 500 gained 48.86 points or 0.80 percent to end at 6,141.02.

The markets continued to benefit from recent upward momentum, which has helped propel the major averages well off their April lows despite lingering uncertainty about tariffs.

The strength on Wall Street also came following the release of a slew of U.S. economic data, including a Labor Department report showing an unexpected decrease by initial jobless claims last week.

Also, revised data released by the Commerce Department showed the U.S. economy shrank by more than previously estimated in the first quarter of 2025, sparking optimism for future rate cuts sooner rather than later.

Crude oil extended its recovery on Thursday amid the ongoing Israel-Iran ceasefire and reports of an increase in fuel demand in the U.S. West Texas Intermediate crude for August delivery closed up by $0.32 to settle at $65.24 per barrel.

Closer to home, Japan will release June data for Tokyo-area inflation later this morning. In May, overall Tokyo inflation was up 3.4 percent on year and core CPI climbed an annual 3.6 percent.

Japan also will see May figures for retail sales and unemployment. Sales are expected to rise 2.4 percent on year, moderating from 3.3 percent in April. The jobless rate is expected to hold steady at 2.5 percent.