(Bloomberg) — Japanese stocks rose as the yen weakened after Federal Reserve Chair Jerome Powell cautioned against assuming large rate cuts will continue. Investors are awaiting the Bank of Japan’s decision Friday.
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The Topix Index rose 2% to 2,616.87 at the close in Tokyo. Exporters of automobiles and electronics were the biggest contributors to the gauge. Nikkei 225 Stock Average advanced 2.1%.
The yen earlier weakened more than 1% to 143.95 per dollar, after appreciating to 140.45 on the Fed’s decision to cut its benchmark interest rate by a half percentage point. Powell signaled at a press conference following the announcement that it’s not in a rush to ease policy.
“For Japanese equities, it was probably the ideal outcome that there was a large rate cut as expected but the yen didn’t appreciate,” said Rina Oshimo, a senior strategist at Okasan Securities Co. “Since the BOJ decision is expected…
