Nikkei Average Closes Above 50,000 for 1st Time

Tokyo, Oct. 27 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average closed above 50,000 for the first time ever on Monday, amid hopes for new Japanese Prime Minister Sanae Takaichi’s policies. The Nikkei index finished at 50,512.32, up 1,212.67 points, or 2.45 pct, from Friday. The broader TOPIX index climbed 55.60 points, or 1.70 pct, to 3,325.05, also hitting a new record high. “Media polls have shown high approval ratings for the Takaichi cabinet, which boosted investor confidence about political stability and supported investor sentiment,” said an official at a major brokerage firm. From the start of Monday’s trading, investors rushed to buy a wide range of stocks, encouraged by a rise in major U.S. equity indexes on Friday on speculation of another interest rate cut by the U.S. Federal Reserve this week. Market sentiment was also brightened by receding concerns about U.S.-China trade tensions after U.S. Treasury Secretary Scott Bessent said that additional 100 pct U.S. tariffs on China would be avoided. “While a string of key events is set for this week, expectations for an upcoming Japan-U.S. summit, in particular, prompted buying,” an official of a bank-affiliated securities firm said. During U.S. President Donald Trump’s three-day visit to Japan from Monday, Trump and Takaichi are scheduled to hold their first summit on Tuesday. “If the meeting is held in a friendly atmosphere, a sense of relief over the political situation will likely spread among market players,” the securities firm official said. END [Copyright The Jiji Press, Ltd.]