Nikkei Briefly Soars over 2,100 Points to Hit Record Intraday High

Tokyo, Oct. 6 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly surged more than 2,100 points in morning trading Monday to hit a record high above 47,000 on an intraday basis. The election of former economic security minister Sanae Takaichi, an advocate of expansionary fiscal policy, as president of Japan’s ruling Liberal Democratic Party on Saturday triggered buying of a wide range of Tokyo stocks. Takaichi is expected to be elected the country’s prime minister on the first day of an extraordinary parliamentary session on Oct. 15. The key index for the Tokyo Stock Exchange’s top-tier Prime section finished the morning at 47,835.36, up 2,085.36 points, or 4.51 pct, from Friday’s closing, after touching the record intraday high of 47,873.40, up 2,103.90 points, or 4.60 pct. The broader TOPIX index on the TSE ended the morning up 89.51 points, or 2.86 pct, at 3,218.68, after also reaching a fresh all-time intraday high, at 3,225.41. In Monday’s currency trading, yen selling accelerated both against the dollar and the euro, as Takaichi’s election as LDP leader led to receding expectations for an early interest rate hike by the Bank of Japan. Takaichi is believed to prioritize economic growth and urge the central bank to communicate closely with the government. At noon, the U.S. currency stood at 149.86-88 yen, up sharply from 147.40-42 yen at 5 p.m. Friday. The euro hit an all-time high against the yen since the European currency was launched in 1999, before standing at 175.74-76 yen at noon, compared with 172.94-96 yen. END [Copyright The Jiji Press, Ltd.]