STOCKS | Nikkei 225 Rises 2.1% as Semiconductor Shares Lead Gains

The Nikkei 225 closed up 2.1% at 66,399.84, with semiconductor stocks leading the advance. According to Sina Finance, Japan's Ministry of Finance said on September 7 that foreign reserves stood at about $1.2075 trillion at the end of August, down $79.575 billion from the previous month and falling for a fourth straight month. Goldman Sachs said tactical long yen positions have become more attractive after the yen's recent strength, citing expectations that the Bank of Japan will tighten policy, possible changes in Japanese capital flows, and the risk of further intervention. According to Sina Finance, the bank said Bank of Japan Governor Kazuo Ueda had essentially confirmed market expectations for a September rate hike, while speculation that the Government Pension Investment Fund may shift asset allocation toward domestic assets has increased the outlook for reduced capital outflows.