Japan's Nikkei Rises as Softer US Inflation Boosts Risk Appetite

The Nikkei share average in Japan rose on Friday, continuing its weekly advance as softer US inflation boosted risk appetite. The benchmark index gained 0.85% to 68,889.01 by midday and was poised for a weekly gain of around 5%. The Topix rose 0.69% to 4,204.99, putting it on course for a record closing high.

The rally in US equities overnight after producer prices were unchanged in July supported expectations that the Federal Reserve will keep interest rates steady at its next meeting. Lower crude oil prices and fading expectations of an early rate increase also contributed to the positive sentiment towards Japanese shares.

Isetan Mitsukoshi Holdings led the decliners, falling 5.25%, while Ibiden dropped 4.08% and Chugai Pharmaceutical declined 3.75%. On the other hand, Shift rose 6.74% as the top gainer, followed by Nintendo at 6.59% and Sony Group's 5.35% advance.