Japanese stocks moved higher on Wednesday, with the Nikkei 225 gaining 0.62% to close at 66,262, extending its advance from the previous session. Easing oil prices helped lift sentiment by reducing concerns over a near-term increase in inflation.
The market also tracked gains on Wall Street, where a sharp decline in long-term US Treasury yields provided further support. Investors continued to monitor the US government’s fiscal reform plans while seeking greater clarity on their potential economic impact.
Attention also turned to Nvidia’s earnings report, with investors looking for fresh indications of the strength of demand for artificial intelligence-related products.
Among major stocks, Advantest rose 3.6%, SoftBank Group gained 1.5%, and Mitsubishi UFJ advanced 1.4%.
Terra Drone jumped more than 20% after Japan’s Acquisition, Technology & Logistics Agency selected the company to supply its Terra B1 interceptor drone to the Japan Self-Defense Forces. The contract is part of an accelerated program aimed at enhancing Japan’s capabilities to counter unmanned aircraft.