Japan’s benchmark Nikkei 225 index surged past the 48,500 mark for the first time ever on Tuesday, extending its record-breaking rally for a second straight session. The surge came as markets continued to cheer the election of Sanae Takaichi as the new leader of Japan’s ruling Liberal Democratic Party (LDP) — a move investors see as reinforcing continuity and expansionary fiscal policies.
At 3:58 am CET, the Nikkei 225 rose 0.55%, while the Japanese yen weakened to ¥150.46 per U.S. dollar, reflecting investor expectations that interest rates will remain low under Takaichi’s leadership.
Analysts said optimism around Takaichi’s pro-growth stance and possible support for the Bank of Japan’s loose monetary policy pushed equities higher, particularly in the banking, export, and technology sectors.
Elsewhere in the Asia-Pacific region, Australia’s S&P/ASX 200 fell 0.17%, while markets in Hong Kong, China, and South Korea remained closed due to public holidays.
The continued strength of Japanese equities highlights growing foreign investor confidence in the country’s economic trajectory, which has been buoyed by corporate reforms, a weak yen, and supportive fiscal measures.
