Japan's Nikkei rises as Wall Street posts stronger gains, Asian peers strong

US stocks drive Nikkei: Japan’s Nikkei share average rose on Thursday, following a strong overnight rally on Wall Street, as a weaker yen buoyed investor sentiment.

The Nikkei index was up 0.93 per cent at 39,847.15 by 0007 GMT, while the broader Topix index gained 1.66 per cent to 2,761.13. US stocks had surged to record highs on Wednesday after Donald Trump's election win, marking a surprising return to the White House after his 2020 defeat.

The dollar hit a four-month high on Wednesday in response to Trump’s victory, with the USD/JPY exchange rate last trading near 154.6, holding steady at around 1.X per cent. A softer yen generally benefits Japanese exporters by increasing the value of overseas earnings when converted to yen.

Among the Nikkei’s top gainers, chip-testing equipment manufacturer Advantest rose 1.14 per cent, providing a strong boost to the index. Conversely, Nitori Holdings, a home interiors retailer that relies heavily on imported materials, saw shares drop 4.84 per cent, weighing on the Nikkei.

Banking stocks advanced, with Sumitomo Mitsui Financial Group rising 6.08 per cent and Mitsubishi UFJ Financial Group gaining 4.9 per cent, reflecting optimism across financial sectors.

(With Reuters inputs)