'Support for Abenomics'… Stock market also surged ahead of Japan's prime minister taking office

Nikkei index breaks 47,000 for the first time

Sanae Takaichi, the former Japanese minister in charge of economic security, won the ruling Liberal Democratic Party leadership election last weekend, making her likely to become the next prime minister, and on the 6th Japanese stocks surged while the yen fell sharply. Takaichi has been pledging 'responsible proactive fiscal policy' and has argued she will actively pursue fiscal expansion.

Japan's representative stock index, the Nikkei 225 average (hereafter the Nikkei index), was 47,518 at 9:36 a.m. on the 6th, up 3.82% from the previous trading day.

This is the first time the Nikkei index has surpassed the 47,000 level. Early in the session it rose as high as 47,734.

The yen's value against the U.S. dollar fell, threatening the 150 yen-per-dollar level. The yen/dollar exchange rate was 149.7 yen per dollar at 9:35 a.m. that day, up 1.60% from the previous trading day.

Takaichi, who has supported 'Abenomics,' showed during the campaign a stance that she would tolerate an increase in the issuance of deficit government bonds.

Yonghyun Shin, Hankyung.com reporter yonghyun@hankyung.com