Japan Hits New Record, Markets Speculate on More Dovish BOJ
Most Asia-Pacific markets rallied on Thursday, led by Japan after the Nikkei 225 broke through the 59,000 level for the first time. This rally was attributed to the "Takaichi trade"—market bets that Prime Minister Sanae Takaichi's pro-growth policies would support stocks, while a looser monetary policy stance would weigh on the yen.
The Nikkei 225 briefly touched the 59,000 mark before closing at 58,753.39 (a record close), while the Topix also hit a new high, closing at 3,880.34. The boost came after the Japanese government appointed Ayano Sato (Aoyama Gakuin University) and Toichiro Asada (Chuo University) as candidates for the BOJ's policy board, which is seen as more dovish/reflationist, in line with Takaichi's economic approach.
Elsewhere in the region, South Korea also rallied sharply after the KOSPI surged past 6,300, while the Bank of Korea held its benchmark interest rate at 2.50% and signaled a longer policy pause. Sentiment was also helped by a rally in technology stocks—including AI chain suppliers—as the market digested Nvidia's results.
However, Asia's gains were uneven. Hong Kong's Hang Seng weakened, while mainland Chinese markets tended to be cautious ahead of the next policy agenda. Overall, risk-on sentiment was helped by the performance of global technology, but investors remained selective as geopolitical issues and concerns about tech sector valuations persist. (asd)
Source: Newsmaker.id
