Nikkei Rewrites All-Time Closing High Ahead of Japan Election

Tokyo, Feb. 3 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average soared over 2,000 points to rewrite its all-time closing high on Tuesday, ahead of Sunday’s general election in the country. The Nikkei average closed at 54,720.66, up 2,065.48 points, or 3.92 pct, from the previous day. The broader TOPIX index climbed 109.71 points, or 3.10 pct, to 3,645.84. A wide range of stocks attracted purchases on the back of overnight rises in major U.S. stock indexes and the yen’s weakening, as well as improvements in economic indicators. “Investors, especially those overseas, appear to be concerned about the risk of not holding stocks, in light of the Japanese market’s rapid ascent,” said an official at a midsize securities firm. The Tokyo market was also backed by media reports that the ruling Liberal Democratic Party is leading in the House of Representatives race. “Hopes for a strong administration and economic policies are behind the current bull market,” said an official of a major brokerage firm. However, an official at a bank-affiliated securities firm warned that the stock market “has already priced in the ruling bloc winning 300 seats (in the 465-seat Lower House),” and that a weaker result for the ruling bloc could trigger selling in the market. On Tuesday, a pause in the fall of gold and other commodity prices also reassured investors, market sources said. END [Copyright The Jiji Press, Ltd.]