The Nikkei stock index ended at a record high above 58,000 on Wednesday, as speculation about further interest rate hikes by the Bank of Japan receded after the government's nomination of two new BOJ policymakers.
The U.S. dollar briefly rose above the 156 yen line in Tokyo after the government submitted to parliament its nominations of university professors Toichiro Asada and Ayano Sato as new members of the central bank's policy board.
The market sees the two as proponents of a reflationary policy that pursues monetary easing. The U.S. currency later retreated to the mid-155 yen range due to wariness about yen-buying intervention, dealers said.
The 225-issue Nikkei Stock Average climbed 1,262.03 points, or 2.20 percent, from Tuesday to 58,583.12. The broader Topix index finished 27.18 points, or 0.71 percent, higher at 3,843.16.
On the top-tier Prime Market, the main gainers were nonferrous metal, electric appliance and real estate issues.
Stocks rose from the outset, buoyed by heavyweight technology shares after software-related issues climbed in the U.S. market, with the Nikkei renewing an intraday record for the first time in two weeks.
The market climbed further in the afternoon, as investors welcomed the nomination of the two BOJ policymakers, brokers said.
"The proposal fueled hopes that it would make it easier for the government of Prime Minister (Sanae) Takaichi to promote its economic policies," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.
Meanwhile, Mitsubishi Heavy Industries fell 1.2 percent to 4,752 yen after the company's subsidiaries were listed as among 20 defense-related entities subject to China's export ban for dual-use items amid a diplomatic row.
© KYODO
6 Comments
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HopeSpringsEternal
Nikkei, simply one of few safe havens from inflation, relative to bonds/JGBs and real estate, which are being ravaged by inflation, and hence rapidly rising yields
grc
Plenty of major stock indices are at record highs these days. Don’t play the ‘Only Japan’ card
tora
Meanwhile my AI index is way down :-( Probably headed for zero. Should have left it in Japanese basket of stocks.
Abe234
The Nikkei 225 is NOT Mr Suzuki's wage packet. You cant go an spend the Nikkei225 in the bar or in Disney, or anywhere else. The money is parked there until A) you die or B) you retire or C) you cash out.
Nyan
If you’re holding Japanese equities, this might be a good spot to take some profits.
Nikkei just printed a fresh record above 58K on fading BOJ hike expectations and dovish board nominations. Feels policy-driven and momentum-heavy. With USD/JPY hovering mid-150s and intervention risk still in play, I’d trim into strength and lock in gains rather than chase up here.
Agent_Neo
China's rare earth embargo has caused stock prices in Japan's defense industry to fall. Thanks, Winnie the Pooh. That'll be a nice bonus.