Nikkei Rises 1.5%, Tech Stocks Lead Rally
Japanese stocks rallied on Tuesday, continuing the euphoria following Prime Minister Sanae Takaichi's election victory. The market is beginning to place greater expectations on the direction of the new government's economic and fiscal policies, which are expected to stimulate spending and support strategic sectors.
The Nikkei 225 index rose 1.5% to 57,205.64, led by gains in technology, electronics, and machinery stocks. These sectors are in the spotlight because they typically benefit the most when the market expects stimulus or policy support for industry.
Several large stocks surged: SoftBank Group rose 5.8%, IHI Corp rose 5.9%, and NEC Corp rose 5.5%. This surge suggests the market isn't just trending upward, but is truly picking "winners" from sectors perceived as having the most potential.
In the foreign exchange market, USD/JPY was at 156.20, slightly lower than 156.40 at the Tokyo Stock Exchange's close the previous day. The yen, which has been sensitive recently, will still be heavily influenced by the direction of Japan's fiscal policy, as well as the authorities' potential response if the yen weakens excessively again.
Looking ahead, investors are still awaiting more details on Takaichi's policy package, while also contemplating the release season for corporate earnings. This combination of "policy promises" and corporate performance will determine whether this rally can be sustained, or whether it's just initial euphoria that quickly fades. (asd)
Source: Newsmaker.id
