Japan’s benchmark Nikkei 225 stock average finished above the 53,000 mark for the first time on Tuesday, supported by reports that Prime Minister Sanae Takaichi is considering calling a snap general election.
The index jumped 1,609.27 points, or 3.09%, from Friday to close at 53,549.16, surpassing its previous record high of 52,518.08 set on Jan. 6. The broader TOPIX index also renewed its all-time high, rising 84.78 points, or 2.41%, to 3,598.89. The Tokyo market had been closed on Monday for a national holiday.
Stocks attracted broad buying after media reports said Takaichi may dissolve the House of Representatives, the powerful lower chamber of parliament, when the ordinary Diet session opens on Jan. 23. Investors bought on expectations that a likely victory by the ruling bloc would allow the government to pursue expansionary fiscal policies, seen as positive for equities and negative for the yen.
An official at a major securities firm said the reports came as a surprise, describing Tuesday’s rally as “a speculative move in reaction to something that was not planned in advance.”
Gains in the Nikkei were led by heavyweight semiconductor-related stocks, with Advantest climbing 8.54% and Tokyo Electron rising 8.23%. Automakers and bank shares also advanced sharply, aided by the weaker yen.
In the bond market, the yield on the benchmark 10-year Japanese government bond rose to 2.16%, its highest level in nearly 27 years, as investors sold bonds on concerns that aggressive fiscal spending following a possible election victory could further damage Japan’s fiscal health.
In currency trading, the yen weakened to 158.75–76 per dollar at 4 p.m. in Tokyo, compared with 157.47–48 at 5 p.m. Friday. The Japanese currency briefly fell to its weakest level in about a year and a half.
Source: Japan News (YS)
Bd-pratidin English/ Jisan
