Japanese stocks surge, with the Nikkei closing at its highest level since mid-October.

Japanese stocks experienced a very strong session during trading on Wednesday, with the Nikkei index closing at its highest level in three weeks, driven by gains in the semiconductor and defense sectors, while investors in the market eagerly awaited the results of the presidential election in the United States.

In terms of trading, the Nikkei index jumped by 2.61% to close at 39,480.67, marking its highest closing level since October 15. The index recorded its largest daily gain since September 26, while the broader Topix index also closed the session up 1.94% at 2,715.92 points.

The gains of the Nikkei index were supported by the rise of the US dollar against the Japanese yen, with the dollar increasing by 1.7% to reach 154.24 yen. The weakening of the yen tends to boost the profits of Japanese exporters abroad when they are repatriated.

In company news, Makita's shares recorded an 83.5% increase in profits attributed to the parent company owners, reaching 38.2 billion yen in the previous two quarters, up from 20.8 billion yen in the same period last year. The core earnings per share rose to 141.99 yen from 77.11 yen, despite a 5.5% decline in revenues to 369.7 billion yen.

On another note, Yamato is set to acquire 87.7% of Nakano Shokai to become its subsidiary, as part of its strategy to grow its express and logistics business globally.

Additionally, East Japan Railway Company has agreed to split its company and transfer its real estate operations to JR East Real Estate Company, effective January 1, 2025, to drive growth and support expansion efforts.