Japan’s leading Nikkei 225 index soared past 58,000 points for the first time on Thursday, driven by optimism over political stability and the government’s economic strategy following recent elections.
The index eased back from its peak but closed marginally higher at 57,663, with the broader Topix up 0.68%.
Japanese shares have hit repeated records recently, boosted by the “Takaichi trade” after Prime Minister Sanae Takaichi’s decisive Lower House victory.
Global investment firm GMO noted that Takaichi’s snap-election landslide gives her an unusually strong, multi-year mandate to execute policy, which they view as broadly supportive for Japan’s markets and corporate sector.
Stocks and bonds have rallied, though GMO cautions yen intervention risks if it nears 160 against the dollar.
Asian markets shrugged off strong U.S. jobs data that dimmed Federal Reserve rate cut hopes and hit Wall Street. South Korea’s Kospi hit a record 5,466.9, up 1.82%; Singapore’s benchmark topped 5,000; Australia’s S&P/ASX 200 rose 0.42%; Hong Kong’s Hang Seng fell 0.23%; China’s CSI 300 gained 0.12%.
The Dow dropped 0.13% to 50,121.40 after January’s jobs report showed 130,000 additions, beating forecasts of 55,000. The S&P 500 was flat at 6,941.47; Nasdaq fell 0.16% to 23,066.47. This follows flat December consumer spending.
Experts see consolidation ahead but sustained gains from Takaichi’s pro-growth policies.