Nikkei Hits 44,000 For First Time On Trade And Stimulus Bets
Japan’s Nikkei share average broke above 44,000 for the first time on Tuesday, fuelled by optimism over trade and expectations of increased government spending.
The Nikkei 225 Index rose 0.9% to 44,018.78 in early trading, while the broader Topix gained 0.4%. The rally followed Monday’s strong momentum after Prime Minister Shigeru Ishiba, known for his fiscal hawkish stance, announced his resignation. His departure has boosted prospects for stimulus under Liberal Democratic Party contender Sanae Takaichi, a supporter of government spending and monetary easing.
Confidence was also lifted after Japan’s chief tariff negotiator Ryosei Akazawa said in an X post that US tariffs on Japanese autos will be lowered by 16 September, formalising a trade deal agreed in July.
Market breadth showed 144 advancers against 77 decliners. Chip equipment maker Advantest surged 6.7%, leading gains, while chemicals group Tokuyama added 5%. At the other end, Citizen Watch fell 5.8% ahead of its October removal from the index, and Takeda Pharmaceutical slipped 2.4%.
Reuters
