Japan's Nikkei tracks Wall Street higher; Kansai Electric surges

The Nikkei closed at a record high on Wednesday, echoing an upbeat overnight performance on Wall Street, as traders gauged economic data for signals of potential central bank policy shifts in the United States and Japan.

Technology shares led the way as Japan's Nikkei 225 Index climbed 0.9% to close at an unprecedented 43,837.67. The broader Topix added 0.6%.

The three main share indexes in the U.S. hit record highs overnight after a downward payrolls revision solidified expectations that the U.S. Federal Reserve will soon cut interest rates to support the economy.


The path is less certain for the Bank of Japan as it eyes a possible rate increase this year to rein in inflation but also political uncertainty following the resignation of Prime Minister Shigeru Ishiba.

The Nikkei surged to a record intraday high of 44,185.73 on Tuesday before losing momentum and finishing in the red on the day.

"The immediate focus remains on the 44,000 level," said Nomura Securities strategist Chisa Matsuda. "As we approach that threshold, profit-taking is expected, potentially weighing on the upside."

On the plus side for Japan's economy, manufacturers' sentiment was its best in more than three years, the Reuters Tankan poll showed in a preview to the BOJ's own closely watched survey due on October 1.

There were 109 advancers on the Nikkei index against 113 decliners. The largest gainers were SoftBank Group, which soared 7.3%, followed by Furukawa Electric, which jumped 5.7%.

Kansai Electric Power jumped 5.3% after a Financial Times report that activist investor Elliott Management has become one of the top three shareholders in the company.

The largest losers were Sumitomo Pharma, which slid 4.1%, followed by Mazda Motor that closed down 3.4%.