The Nikkei 225 jumped 1.4% to above 39,500, while the broader Topix index rose 0.7% to 2,732 on Wednesday (22/1), hitting its highest level in almost two weeks and tracking gains on Wall Street overnight. The rally came as U.S. President Donald Trump opted not to implement his tariff threats, offering relief to global markets. Despite the gains, investors remained cautious ahead of the Bank of Japan's monetary policy decision this week, with BOJ officials hinting at a possible interest rate hike. Nearly all sectors participated in the rally, with major blue chips gaining significantly, including Disco (+5.3%), Advantest (+3.4%), Fujikura (+4.7%), Nintendo (+2.5%) and Toyota Motor (+1.2%). SoftBank Group also jumped 7.5% after Trump announced a significant AI infrastructure investment involving the company.

Source: Trading Economics