TOKYO: Japan’s Nikkei share average climbed to a 3-1/2-month high on Wednesday, rising for a fourth straight session, as a weakening yen buoyed the outlook for exporters.

Retailer shares also rallied on optimism over a return of big-spending Chinese tourists after Japan reopened its borders this month.

The Nikkei finished 0.48% higher at 28,444.19 after steadily extending gains in the afternoon session. It probed as high as 28,469.41 just minutes ahead of the close, a level last seen on Nov. 24.

The index has rallied about 3.5% since last Thursday.

Nikkei ends at nearly 3 month high after Wall Street gains; Fast Retailing shines

The broader Topix rose 0.3% to 2,051.21 and touched 2,053.01 for the first time since November 2021.

The rise in Japanese stocks came even as most other Asian markets declined after comments from Federal Reserve Chair Jerome Powell raised the possibility of the U.S. central bank returning to larger rate hikes.

That sent U.S. long-term yields higher, but also the dollar against the yen. The Japanese currency dipped to a nearly three-month low at 137.90 to the greenback, boosting the value of overseas revenue at automakers and other multinationals.

Mazda jumped 2.98% to be among the Nikkei’s top five performers. Uniqlo store owner Fast Retailing gained 1.81% to be the biggest support, contributing 54 index points to the Nikkei’s 135-point advance.

Nissan, however, tumbled 3.54% to lead decliners after S&P cut its rating to junk status.

Meanwhile, department store operators made up the top three risers on the Nikkei, with Takashimaya Co., Isetan Mitsukoshi Holdings and J. Front Retailing each up around 4.4%.

“It looks like global investors’ focus is on the possibilities for inbound tourism,” said Yunosuke Ikeda, chief equity strategist at Nomura Securities.

“I am a little cautious on further upside, in particular for growth stocks in the next couple of months,” he added. “U.S. monetary policy will have an impact on valuation adjustments.”