Nikkei ends at 2-week high amid hopes of slowdown in US ‎interest rate hikes

The Japanese Nikkei index closed at its highest level in two weeks today, Wednesday, and followed in the footsteps of Wall Street’s gains, as less-than-expected US inflation data reinforced expectations that the Federal Reserve (the US central bank) may ease the pace of interest rate hikes.

According to “Reuters”, the Nikkei rose 0.72 percent to 28156.21, its highest closing level since the beginning of December. The broader Topix index increased 0.6 percent to 1977.42.

US stocks rose on Tuesday night after a small, unexpected increase in consumer prices boosted optimism that the Federal Reserve would soon reverse its decisions to raise interest rates to curb inflation.

Big technology companies led the Nikkei index higher, and chipmaker Tokyo Electron Co rose 1.9 percent, giving the index the biggest boost.

The aviation sector was the biggest loser among the industrial groups on the stock exchange, as it fell 0.9 percent.