The Nikkei 225 Average (Nikkei Index), Japan's leading stock market index, hit a record high for the second consecutive day on the 26th.
The Nikkei Index closed the day at 58,753, up 0.29% from the previous day's closing price.
Around 9:05 a.m., it climbed to as high as 59,332, breaking through the 59,000 level during trading hours for the first time ever.
The Nihon Keizai Shimbun (Nikkei) explained that the rise in the U.S. stock market the previous day, as well as the weak yen and strong dollar trend, had an impact. However, it reported that after a sharp jump immediately after the market opened, the rally lost steam as profit-taking sales emerged amid concerns about a short-term overheating. It also analyzed that whether the Nikkei Index breaks through the 60,000 level will depend on the Japanese government's growth investments and improvements in corporate profitability.
U.S. financial media outlet CNBC reported that the Nikkei Index set an all-time high on the back of the so-called "Takaichi trade." The previous day, the Japanese government submitted to the National Diet a personnel proposal to appoint Doichiro Asada, an emeritus professor at Chuo University with a dovish stance, and Ayano Sato, a professor at Aoyama Gakuin University, as the next Policy Board members of the Bank of Japan (BOJ). Analysts say this reflects the intentions of Japanese Prime Minister Sanae Takaichi, who favors monetary easing. There was also a report on the 16th that Prime Minister Takaichi expressed reluctance toward a rate hike during a meeting with Bank of Japan Governor Kazuo Ueda.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
