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Japanese shares rise on Fed cut, close in on this year's peaks

Published 09/19/2019, 10:36 AM
Updated 09/19/2019, 10:40 AM
Japanese shares rise on Fed cut, close in on this year's peaks

TOKYO, Sept 19 (Reuters) - Japanese shares advanced to close
in on this year's peaks on Thursday after a long-expected rate
cut by the U.S. Federal Reserve helped ease concerns on the
global economy, sparking buying in a broad range of shares.
Many investors now await a policy announcement later on
Thursday from the Bank of Japan, which is widely expected to
keep interest rates on hold to save its scarce ammunition for
further easing.
In late morning trade, the Nikkei share average .N225 rose
1.01% to 22,183.53, edging near its year-to-date high of 22,362
hit in late August.
The broader Topix .TOPX gained 1.05% to 1,623.50, coming
within reach of its Aug. 17 peak of 1,633.96.
The Fed cut interest rates for a second time this year to
1.75%-2.00% in a 7-3 vote, although it signalled further rate
cuts are unlikely as the labour market remains strong.
Despite lingering worries about the U.S.-China trade war,
hopes that the worst may be over soon are supporting the market,
especially in the battered semi-conductor sector.
Advantest Corp 6857.T rose 3.8% and Murata Manufacturing
6981.T gained 1.4%.
Broader electronics makers also did well, with Fujitsu
6702.T rising as much as 3.3% to hit a 21-month high while Oki
Electric 6703.T gained 2.5%.
In addition to the Fed cut, shares of exporters also drew
support from a weaker yen, which stayed near 1 1/2-month-lows
against the dollar.
High-yielding power company shares were also bought after
the U.S. interest rate cut.
Kansai Electric Power Co Inc 9503.T rose 3.5% and Chubu
Electric Power 9502.T gained 2.5%.
All of Tokyo Stock Exchange's 33 industry subindexes .TSEK
posted gains.
Japan Tobacco 2914.T bucked the trend, falling 0.5% after
India banned the sale of electronic cigarettes. (Editing by Richard Borsuk)

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