The Nikkei 225 Index rose 0.27% to 50,582 while the Topix Index gained 0.65% to 3,384 on Monday, recouping part of the previous session’s losses as firm expectations of a US Federal Reserve rate cut this week supported sentiment. Still, investors remained cautious amid escalating geopolitical tensions between Japan and China. Markets also digested data showing real wages fell for the tenth straight month in October and that Q3 economic growth contracted more sharply than initially estimated, adding uncertainty to expectations that the Bank of Japan could raise interest rates next week. Notable gainers included Kioxia Holdings (7.6%), Fujikura (7%), Mitsubishi Heavy (3.1%), Disco Corp (3%) and Sanrio (4.2%). Meanwhile, AI-linked stocks mostly declined on persistent valuation concerns, with SoftBank Group sliding 3.3%.