Nikkei 225, Japan's leading stock index, set a new record closing high for the third consecutive trading day.
On October 7, the Nikkei 225 closed at 47,950, up 0.01% from the previous day's closing price. During the morning session, the index hit an intraday high of 48,527, but declined in the afternoon.
Nikkei reported that "there was strong selling pressure as investors were conscious of the market overheating."
The backdrop for this bullish trend in the Nikkei 225 is attributed to Sanae Takaichi, President of the ruling Liberal Democratic Party of Japan, and her policy stance on fiscal expansion. Takaichi, who is expected to take office as Prime Minister around the middle of this month, is anticipated to continue the so-called 'Abenomics' of former Prime Minister Shinzo Abe, including large-scale quantitative easing and increased fiscal spending.
The yen-dollar exchange rate, which climbed back into the 150-yen range for the first time in about two months the previous day, remained at around 150.6 yen as of 3:50 p.m. on October 7.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
