Nikkei Breaks Another Record, "Sanaenomics" Gaining Trust
The Nikkei closed at another record high, continuing its rally after hitting an all-time high in the previous session. This increase was driven by market optimism regarding the policy direction of Japanese Prime Minister Sanae Takaichi, particularly following the results of the lower house elections, which were seen as strengthening her government's chances of a longer term.
J.P. Morgan predicts the Takaichi administration has the potential to be long-term and is pushing for the acceleration of policies dubbed "Sanaenomics." This concept leads to a proactive fiscal policy while still paying attention to interest rates and exchange rates, encouraging corporate investment, and accelerating corporate reforms.
Sectorally, the Nikkei's gains were supported by a surge in several blue-chip stocks. Furukawa Electric surged 23%, while Nissan Chemical rose 17%, reflecting strong buying interest in stocks considered to benefit from the investment and reform push.
The Nikkei closed up 2.3% to 57,650.54. Meanwhile, the yen strengthened against the US dollar, with USD/JPY at 155.33, compared to 156.40 at the Tokyo stock market close the previous day—signaling continued risk inflows even as the market continues to monitor exchange rate dynamics. (asd)
Source: Newsmaker.id
