Political Signals and Tech Surge Drive Japanese Stocks Higher
Japanese stocks rallied on Thursday (October 16th), driven by easing political uncertainty and positive sentiment in the technology sector. The Nikkei index rose 1.3% to 48,277.74, while the Topix index also gained 0.6% to 3,203.42. SoftBank shares were the biggest supporter of the Topix, rising sharply by 8.6%. Of the 1,672 stocks on the Topix, 879 rose and 711 fell.
Political news that boosted the market came from Sanae Takaichi, leader of Japan's ruling party, who sought opposition support for next week's prime ministerial vote. This revived the previously fading "Takaichi trade." In the technology sector, semiconductor stocks such as Tokyo Electron and Socionext surged after TSMC and ASML reported strong outlooks and earnings, fueling investor optimism about the global chip industry.
Market strategists say the potential for a long-term interest rate hike in Japan is now diminishing as fiscal concerns ease, making banking stocks more attractive to investors. Despite lingering political uncertainty, the market appears more optimistic about the policy direction and the potential formation of a new coalition. (asd)
Source: Newsmaker.id
