Japanese Stocks Rise Ahead of Central Bank Meetings

Japanese Stocks on the Rise

Japan's Nikkei share average climbed on Friday, heading for a third straight weekly advance. This rise comes amidst optimism from Wall Street and ahead of two pivotal central bank meetings.

The Nikkei 225 Index rose 0.9% to 50,610.04, set to eke out a 0.2% gain on the week. The broader Topix was up 1.6% after reaching a record intraday high of 3,420.57.

Market Reaction to Recent Events

The S&P 500 and the Dow notched record closing highs in New York overnight after a Federal Reserve policy update that was less hawkish than expected. This update has contributed to the optimism in the market.

A recent earthquake with a preliminary magnitude of 6.7 hit Japan's northeastern region, prompting a tsunami advisory. However, this did not seem to impact the market significantly.

Key Players and Trends

Japanese equities have rallied after some weakness ahead of the Federal Reserve meeting. Now, attention is focused on messaging at the Bank of Japan's policy decision on December 19, said Nomura Securities strategist Maki Sawada.

Technology shares, which have soared lately due to artificial intelligence investment, were weighed down after disappointing results by Oracle.

The largest percentage gainers were Sumitomo Metal Mining, up 6.7%, followed by industrial fibre maker Toray Industries, which jumped 5.9%. On the other hand, the largest losers in the Nikkei were semiconductor industry supplier Disco, down 2.9%, followed by chipmaker Tokyo Electron, which slid 2.3%.

Looking Ahead

As the market looks ahead to the Bank of Japan's policy decision, market sentiment is expected to be somewhat cautious. If the Nikkei recovers to 51,000, resistance at that level might become noticeable, according to Nomura Securities strategist Maki Sawada.

With 204 advancers on the Nikkei against 19 decliners, the market seems to be trending upwards, driven by investor optimism and positive market trends.