Summary
- It reported that Japan's Nikkei255 index surpassed 50,000 for the first time in history.
- AI semiconductor stocks and defense-related stocks led the market's rise that day, and it said expectations for 'Sanaenomics' were reflected.
- Nomura Securities forecast that the Nikkei index could rise to 52,000 by the end of the year.
AI semiconductor stocks lead the rally
Japan's Nikkei255 index surpassed 50,000 for the first time in history on the 27th. Analysts say expectations for 'Sanaenomics', the economic policy of the Sanae Takaichi cabinet, which has recorded a high approval rating of 60∼70%, are leading to the stock market rise.
On that day the Nikkei index closed at 50,512, up 2.46% from the previous session. It rose as high as 50,549 intraday. AI and semiconductor stocks such as Fujikura (7.98%), SoftBank Group (6.66%), and Advantest (6.53%) led the gains that day.
Defense-related stocks strengthened after Prime Minister Takaichi announced a policy to strengthen defense capabilities. Kawasaki Heavy Industries surged 9.02% from the previous session to a record high. Mitsubishi Heavy Industries (1.20%) and Fujitsu (1.37%) also rose more than 1%.
According to a poll conducted by the Nihon Keizai Shimbun and TV Tokyo from the 24th to the 26th, the approval rating of the Takaichi cabinet was 74%, 23 percentage points higher than the 51% at the launch of the Shigeru Ishiba cabinet. The Nihon Keizai Shimbun analyzed that "policy expectations for the Takaichi cabinet, along with expectations of a U.S. benchmark interest rate cut, are leading to stock price increases."
Prime Minister Takaichi is known as a follower of former Prime Minister Shinzo Abe's 'Abenomics', which is characterized by fiscal expansion and monetary easing. In the past, after former Prime Minister Shinzo Abe won the LDP presidential election in 2012, about 25 trillion yen flowed into the Japanese stock market over two years, and the Nikkei index rose by about 2.3 times.
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Nomura Securities forecast that the Nikkei index could rise to 52,000 by the end of the year. Tomoya Kitaoka, a researcher at Nomura Securities, said, "The rally in AI-related stocks could spread to automobile and food-related stocks." Nikkei projected that this week's earnings announcements from major companies such as Advantest, Tokyo Electron, and Hitachi could affect the stock market going forward.
Mansu Choi, reporter bebop@hankyung.com
Korea Economic Daily
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