Nikkei Breaks 54,000 Barrier as Japanese Stocks Rally to New Heights
Boosted by speculation of an early general election, Japan's stock market extended its upward momentum, with the Nikkei 225 index setting a fresh record for the second consecutive day. The benchmark closed up 1.48% at 54,341.23, marking the first time it has ever surpassed the 54,000 threshold, reflecting strong investor confidence and renewed market dynamism.
Policy Shift Expectations Fuel Market Momentum
Markets are pricing in potential fiscal and regulatory reforms under a new government, sparking increased buying from both domestic and international investors. Sectors such as technology, robotics, and advanced manufacturing saw significant inflows, driving broad-based gains across the equity landscape.
Yen Weakness Accelerates Amid Rate Speculation
While equities shine, the yen continues to slide. USD/JPY held above 159, edging closer to the critical 160 level, rising 0.14% on the day. Japanese government bond yields also climbed, signaling growing market bets that the Bank of Japan may further unwind its ultra-loose monetary policy in the coming months.
- Nikkei 225 closes at record high of 54,341.23
- Investor focus shifts to potential policy reforms
- USD/JPY nears pivotal 160 mark
- Yield rise signals changing monetary outlook