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Nikkei Hits Record High Again on October 7th on Hopes for Takaichi’s Fiscal Policy

TOKYO - The Nikkei Stock Average climbed again on October 7th, setting another record high amid growing expectations surrounding the Liberal Democratic Party’s new leader, Sanae Takaichi. The benchmark index at one point rose more than 500 yen, marking the second consecutive day it reached an intraday record.

Investors anticipate that Takaichi’s proactive fiscal stance will provide firm support to Japan’s economy, fueling optimism in the market. Buying activity extended to key sectors such as semiconductors and defense, collectively known as “Takaichi-related stocks,” as confidence in her economic approach strengthened.

Source: TBS

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A tropical depression south of Japan is expected to develop into Typhoon No. 24 by September 1 and could approach the Japanese archipelago later in the week, raising the risk of renewed warning-level rainfall and widespread flooding in Hokuriku and heavy rain in the Kanto and Tokai regions.

Japan will lower the statutory speed limit on certain residential roads from 60 kilometers per hour to 30 km/h from September 1, with police in Hyogo Prefecture urging drivers to familiarize themselves with the new rules and drive more carefully in neighborhood areas.

A new large ferry linking Maizuru in Kyoto Prefecture with Otaru in Hokkaido has been unveiled ahead of its first voyage on September 1, offering spacious passenger facilities and a journey time of about 21 hours.

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Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

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Tokyo stocks ended mixed on August 31, with the Nikkei 225 closing at 66,311.93, down 93.63 points, or 0.14%, after briefly plunging more than 1,500 points in early trading, while the broader TOPIX rose 9.58 points, or 0.23%, to 4,156.29 for its eighth straight gain.

Japan's benchmark long-term interest rate briefly climbed to 2.95% on August 31, its highest level in about 30 years, as investors sold government bonds on expectations of further Bank of Japan rate increases, rising U.S. yields and concerns over the outlook for government spending.

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Consumer prices in central Tokyo rose 1.8% in August from a year earlier, with the pace of inflation accelerating for a third consecutive month as higher food prices continued to put upward pressure on household costs.

Tokyo stocks rose on August 28, with the Nikkei 225 closing at 66,405.56, up 273.58 points, or 0.41%, as information-technology, software, automaker and selected semiconductor-related shares gained after a U.S. technology rally, while investors remained cautious before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech.

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Tokyo stocks slipped on August 27, with the Nikkei 225 closing at 66,131.98, down 130.18 points, as early buying in artificial intelligence and semiconductor-related shares following Nvidia’s strong earnings forecast faded into profit-taking, while the broader TOPIX edged higher for a sixth straight session.