Japanese Stocks Rebound Slightly, Market Focuses on Weekend Elections
Japanese stocks edged higher on Thursday, recovering some of the previous session's losses as investor attention shifted to this weekend's lower house elections. The Nikkei 225 rose around 0.2%, while the Topix advanced a more solid 0.4%—reflecting a stabilizing sentiment after volatility in global sectors, particularly technology.
The main focus was on Prime Minister Sanae Takaichi's decision to call snap elections to secure support for her policy agenda, including increased spending and other fiscal priorities. Meanwhile, market participants also began positioning ahead of Japan's fourth-quarter GDP release next week, which is expected to rebound after a sharp contraction in the previous quarter.
In terms of stock movements, gains were led by major names with significant weightings in the index. Toyota advanced around 1.7%, followed by Hitachi +1.1%, Lasertec +0.8%, Shin-Etsu Chemical +0.7%, and JX Advanced Metals +2.3%. The performance of these stocks helped keep the market in the green, although investors remained selective.
In the corporate sector, the spotlight came from Renesas Electronics, which surged approximately +7% after announcing plans to sell its Timing business to SiTime for US$3 billion. This corporate action is seen as a strategic move to streamline its portfolio and strengthen its focus on core businesses.
In conclusion, the Japanese market is entering a "wait-and-see" phase: elections and GDP are the two closest catalysts that could determine the direction of the yen, bonds, and stocks—especially as fiscal policy (spending/taxes) has the potential to change investor expectations regarding Japan's future growth prospects. (asd)
Source: Newsmaker.id
