Nikkei Swings After New PM Wins, Investors Choose to Take Profits
The Nikkei 225 stock index closed slightly lower on Tuesday after quite volatile trading. Although it briefly surged to near a psychologically important level early in the session, the gains were short-lived. Sanae Takaichi's victory as Japan's new prime minister had boosted market optimism over the possibility of a large fiscal stimulus, but many investors opted to take profits after the Nikkei's long rally over the past month.
Selling pressure emerged because some market participants felt stock prices were too high compared to short-term prospects. Since news of the previous PM's resignation, the Nikkei index has recorded significant gains. Now, the market focus is shifting from policy expectations to the actual results of the Takaichi administration. Meanwhile, the weakening yen has also reinforced concerns about the future direction of the Japanese economy, although a weaker currency typically benefits exporters. (az)
Source: Newsmaker.id
