Nikkei Average Renews Record Finish on Continued Election Hopes

Tokyo, Jan. 14 (Jiji Press)–Japan’s key Nikkei 225 stock average hit a fresh closing high of more than 54,000 on Wednesday, as hopes persisted of a snap general election boosting prospects for Prime Minister Sanae Takaichi’s aggressive spending policy. The key index of 225 major issues listed on the Tokyo Stock Exchange’s top-tier Prime section jumped 792.07 points, or 1.47 pct, from Tuesday’s close, which was the previous record high finish, to end at 54,341.23. The broader TOPIX index also logged its best-ever finish, at 3,644.16, up 45.27 points, or 1.26 pct. Market players’ rosy hopes reflected anticipation that the ruling Liberal Democratic Party will expand its seat count in the House of Representatives if Takaichi decides to dissolve the lower parliament chamber for an election, making it easier for her to pursue her policies. Stocks were also pushed up by the strength of the U.S. market on Tuesday as well as the weakening of the yen against the dollar, which benefits exporters. Over 70 pct of Prime section issues posted advances, with semiconductor- and artificial intelligence-related names especially attracting buying. But the bullish market prompted concerns of overheating, with an official at a Japanese securities firm warning, “The pace of increase is too fast.” In Wednesday’s interdealer bond trading, the key 10-year Japanese government bond yield, Japan’s benchmark long-term interest rate, rose to 2.185 pct at one point, the highest level in about 27 years. JGBs were sold on worries that Japan’s fiscal health may deteriorate due to Takaichi’s expansionary fiscal policy. The dollar reached 159.14-15 yen at 4 p.m. Wednesday, compared with 158.95-95 yen at 5 p.m. the previous day. The greenback briefly marked its strongest level against the Japanese currency since July 2024. END [Copyright The Jiji Press, Ltd.]