Japan’s Nikkei jumps 5% on ruling bloc’s landslide election win, hits new intraday record
Summary
- The Nikkei 225 Stock Average hit a new intraday all-time high, rising 5.49% from the previous session, it said.
- It said the LDP’s sharp increase in seats in the general election would strengthen the Sanae Takaichi administration’s policy momentum.
- It said expectations around “responsible proactive fiscal policy” and continued yen weakness are feeding into sentiment and driving buying.
After Japan’s ruling Liberal Democratic Party (LDP) scored a landslide victory in the House of Representatives election (general election) on the 8th, the Nikkei 225 Stock Average—Japan’s benchmark equity index—set a new intraday all-time high.
On the 9th, the Nikkei opened at 55,130.63 and later topped 57,000 in intraday trading. As of 9:23 a.m., the index was up 5.49% from the previous session at 57,232.78.
Market participants said buying continued on expectations that the Sanae Takaichi administration’s ability to push ahead with policy would strengthen as the LDP significantly increased its seat count in the general election.
Expectations that Prime Minister Takaichi will find it easier to pursue policies such as “responsible proactive fiscal policy,” along with views that the yen’s weakness will persist, were also seen as underpinning sentiment.
By Yonghyun Shin, Hankyung.com yonghyun@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
