Japan's Nikkei stock index closes at record high for 2nd consecutive day

ISTANBUL

Japan's Nikkei stock index finished above the 43,000 mark for the second straight day in a row on Wednesday, hitting an all-time high as lower-than-expected US inflation data boosted optimism for the US economy and an earlier Federal Reserve rate cut.

The benchmark index gained 1.3%, or 556.50 points, to close midweek at 43,274.67.

Air travel, nonferrous metal, and service-related stocks were among the top performers on the Prime Market, according to Kyodo News.

The yen, considered a safe-haven asset, weakened as equities rose and investor risk appetite increased, briefly pushing the US dollar to the lower 148-yen range in Tokyo.

As lower-than-expected annual inflation data for the US in July stoked expectations of a rate cut by the Fed in September, stocks rose for a fifth consecutive day.

After soaring more than 2,400 points over the previous five trading days, investors locked in profits, causing the Nikkei index to cut some of its gains later in the day after rising more than 700 points at one point.

The annual inflation rate in the US was 2.7% in July, below the market expectation of 2.8%.

According to official figures from the Bureau of Labor Statistics, the monthly inflation rate was also at 0.2%.