Japan's Nikkei breaks 50,000 for the first time in history… Asian markets all 'pillars of flame'

Fiscal expansion·Strategic industry promotion…"Takaichi trade"

The Nikkei 225 average share price (Nikkei index), Japan's representative stock index, surpassed 50,000 yen intraday for the first time in history, buoyed by prospects of easing U.S.-China trade tensions and expectations for Prime Minister Sanae Takaichi's fiscal expansion policy.

On the 27th, according to the Nihon Keizai Shimbun, the Nikkei index opened at 49,905.80, up 606.15 points (1.22%) from the previous trading day. It then extended its gains and, as of 9:03 a.m., was trading at 50,138.96, up 839.31 points (1.70%), reaching the 50,000 mark for the first time in history.

Nihon Keizai Shimbun analyzed that a positive factor was the U.S. decision to defer imposing 100% tariffs on China in trade talks held through the previous day.

Also, with last weekend's U.S. Consumer Price Index (CPI) coming in below market expectations, expectations grew that the U.S. Federal Reserve (Fed) is more likely to cut interest rates as anticipated.

The effect of Prime Minister Takaichi, who has advocated fiscal expansion and the promotion of strategic industries, is also supporting the stock market.

Prime Minister Takaichi stated during the election campaign that, under the banner of a 'Strong Japan,' she would pursue bold investments in strategic industries such as AI, semiconductors, nuclear fusion, and the defense industry. According to this policy direction, semiconductors, shipbuilding, and defense are cited as beneficiary stocks and are credited with driving the market rise.

Meanwhile, the KOSPI also surged intraday to the 4,038 level, reaching the 4,000 level for the first time in history.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com