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. The Nikkei average surpassed 40,000 for the first time in March last year, but it tumbled below 31,000 in April this year, following U.S. President Donald Trump’s announcement of the introduction of reciprocal tariffs. Nevertheless, stocks later rallied sharply, backed by the conclusion of a Japan-U.S. tariff agreement, strong corporate earnings and the prospect of growth in the artificial intelligence sector. In October, the stock market accelerated its ascent after Takaichi, an advocate of active fiscal policy, was elected leader of Japan’s ruling Liberal Democratic Party and became prime minister. Now that the Nikkei average has surpassed the historic threshold of 50,000, an official at a Japanese brokerage firm said, “The market is likely to face profit-taking due to a sense of achievement.” “The market may enter a correction phase if speculation of an early interest rate hike by the Bank of Japan grows,” the brokerage official added. END [Copyright The Jiji Press, Ltd.]