Tokyo stocks end higher after US gains

Tokyo shares ended higher Wednesday following US gains on growing speculation that the Federal Reserve will skip a rate hike.

The benchmark Nikkei 225 index jumped 1.47 per cent, or 483.77 points, to end at 33,502.42, while the broader Topix index added 1.31 per cent, or 29.74 points, to 2,294.53.

The dollar fetched 140.10 yen, against 140.17 yen in New York on Tuesday.

Investors were cheered by rallies on Wall Street, where "sentiment turned even more bullish on speculation that the Fed will skip an additional rate hike", IwaiCosmo Securities said.

Shares were further bolstered by the view that China will undertake measures to refuel its economy, the brokerage said.

Data showed on Tuesday that US inflation slowed further in May, following a string of recent readings that suggested 15 months of central bank tightening were beginning to kick in. It came after a mixed US jobs report this month that showed the labour market remained resilient but gave the Fed room to skip a hike in June.

China announced a small cut in its short-term lending rates on Tuesday as authorities try to kickstart a recovery in the economy, which has run out of steam after an initial burst following the lifting of zero-Covid restrictions.

Among major shares, SoftBank Group surged 4.75 per cent to 6,610 yen, Toyota soared 6.28 per cent to 2,310 yen and Uniqlo operator Fast Retailing spiked 3.18 per cent to 36,940 yen.