Japan’s Nikkei 225 stock index reached an all-time high again on Thursday morning, tracking a Dow Jones Industrial Average rally overnight after the U.S. Federal Reserve cut rates by a quarter point.
The benchmark rose as high as 45,055.99 shortly after the open, breaking the last record, of 45,055.38, reached only two days ago.
Thursday’s high is the fifth record so far in September and follows four records in August. Tokyo stocks have rallied in recent weeks following Prime Minister Shigeru Ishiba’s resignation announcement and in anticipation of the September rate cut in the United States.
The Fed cut its policy rate by 0.25 percentage points on Wednesday in Washington, following months of pressure for it to make a move lower from U.S. President Donald Trump and in the context of continued economic uncertainty.
“Recent indicators suggest that growth of economic activities has moderated,” Fed Chair Jeromy Powell said at a news conference announcing the rate cut, while noting higher-than-usual inflation rate, a slow-down in consumer spending and weak growth in the labor market.
“Policy is not on a preset course,” he added.
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