Nikkei tops 53,000 for first time as Japan PM eyes early election
Japan’s key stock indexes closed at record levels on Tuesday, with the Nikkei topping 53,000 for the first time, amid rising speculation that Prime Minister Sanae Takaichi may dissolve the House of Representatives for a snap election later this month.
The 225-issue Nikkei Stock Average surged 1,609.27 points, or 3.10%, to finish at 53,549.16. The broader Topix index rose 84.78 points, or 2.41%, closing at 3,598.89. Both benchmarks also hit intraday all-time highs, News.Az reports, citing foreign media.
Takaichi informed a ruling Liberal Democratic Party official of her plan to dissolve the House at the start of the ordinary parliamentary session on Jan. 23.
Investors drove stocks higher on hopes that a snap election could strengthen the ruling bloc, enabling Takaichi to advance her expansionary fiscal policies.
Meanwhile, concerns over Japan’s fiscal health pressured the yen and government bonds. The yen fell close to 159 against the U.S. dollar, its lowest level since July 2024, while the yield on the benchmark 10-year Japanese government bond briefly rose to 2.16%, its highest level since February 1999.
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