Japan’s Nikkei Stock Average rose 0.6% to 47,131.16 on Wednesday, supported by expectations of a U.S. Federal Reserve rate cut later this month. Fed Chair Jerome Powell signaled on Tuesday that the central bank is likely to deliver an additional 25 basis points reduction, according to a research note from Commerzbank Analysts.

Among the top performers on the benchmark index, Modec Inc. gained 6.1%, while Sanrio and Aeon each added 4.7%. Conversely, Asahi Group Holdings fell 1.1% after announcing it would postpone its Q3 financial results due to disruptions from a recent cyberattack.

In currency markets, the USD/JPY pair traded at 151.81, slightly below 151.83 seen late Tuesday in New York, reflecting a cautious tone amid central bank developments and global market volatility.

Investors are closely watching both U.S. monetary policy signals and domestic corporate earnings, as these factors continue to drive short-term momentum in Japanese equities.