Japan's Nikkei index rises 1.4% to 43,630.54 at morning close

Japan's Nikkei index rises 1.4% to 43,630.54 at morning close

Japan's Nikkei 225 index rose 1.4% to 43,630.54 at the morning close on September 2, 2025, following the resignation of Prime Minister Shigeru Ishiba [1]. The increase was driven by optimism among investors that the Federal Reserve could soon lower interest rates, as indicated by softer US jobs data [2]. The Nikkei's gain was part of a broader positive trend in Asian markets, where investors assessed the political and economic developments in the region.

The Japanese yen weakened 0.64% to 148.33 against the greenback, reflecting the market's focus on the potential for monetary easing. South Korea's Kospi and Kosdaq indices also saw modest gains, while Australia's S&P/ASX 200 slid 0.38%. Futures for Hong Kong's Hang Seng index stood at 25,344, lower than its last close of 25,417.98. China's trade data for August will be closely watched [1].

Oil prices inched higher after OPEC+ announced a production increase starting in October. Global benchmark Brent added 0.53% to $62.2 a barrel, while U.S. West Texas Intermediate futures traded 0.6% higher at $65.89 per barrel [1].

U.S. stock futures were little changed on Sunday, as investors prepared for a week of key economic data releases, including the producer price index and consumer price index reports. The previous Friday saw all three major U.S. averages close lower, following a weaker-than-expected jobs report [1].

The Nikkei's rise reflects a broader trend of investors betting on a potential Federal Reserve rate cut, which could provide a boost to riskier assets and support economic growth. The Japanese market's performance is also influenced by domestic factors, such as rising household spending and major investments in green initiatives and international growth [2].

References:
[1] https://www.cnbc.com/2025/09/08/asia-pacific-markets-nikkei-225-japan-yen-ishiba-resignation.html
[2] https://finimize.com/content/japans-nikkei-rises-as-markets-bet-on-fed-rate-cut