The Nikkei 225 rose 1.4% to 58,740, setting a fresh all time record, with gains supported by renewed demand for technology and semiconductor stocks. The weakening yen against the US dollar has strengthened the profitability of Japan’s export oriented companies and is seen as one of the key drivers of the rally. Reports from Sanae Takaichi’s meeting with the Bank of Japan indicate the government remains cautious about raising interest rates, boosting expectations that supportive policies will continue. Meanwhile, Donald Trump’s speech in the United States failed to provide a new catalyst for global markets, prompting part of international liquidity to shift toward Asian markets, especially Japan.

Monthly inflation in January was higher than forecast, mainly driven by rising housing costs, reinforcing the case for continued monetary tightening. Data show core inflation reached 3.4% and has remained above the Reserve Bank of Australia’s 2 to 3% target range for a seventh consecutive month. Following the release, traders increased expectations of another rate hike in the coming months, and some institutions, including Goldman Sachs, have even raised the possibility of continued increases.

The third round of Iran US negotiations was held in Oman. According to reports, the Americans entered with strict conditions and the Islamic Republic’s proposal is inconsistent with US demands. Reports say that today Oman’s foreign minister will meet with Vance in Washington. J.D. Vance said in an interview with The Washington Post that the United States will not enter a long term war with Iran. Meanwhile, the idea of a Trump strike on Iran without congressional authorization has been raised and has faced criticism from Democrats. Oil, which had risen last night on disappointment over the talks, fell again after a tweet by Oman’s foreign minister signaled progress in negotiations.

Ukraine’s chief negotiator said participants in the Geneva talks consulted with Volodymyr Zelensky about the course of discussions and that the main focus of these negotiations has been on the issue of Ukraine’s post war reconstruction. He stressed that under current conditions the priority for all sides is to make upcoming trilateral meetings as productive as possible so that final frameworks in the security and economic fields can be defined and stabilized.