Japan’s benchmark Nikkei 225 climbed to another record high on Thursday, extending its streak of gains as investor enthusiasm around the so-called Takaichi trade continued to fuel buying in domestic equities. The index rose 1.1 percent to close at an all-time high of 59,199.31, marking its third consecutive session of record finishes. The broader Topix index also advanced 1.45 percent, reaching a fresh peak as market sentiment remained buoyant.
The rally in Japan stocks has been closely linked to expectations surrounding Prime Minister Sanae Takaichi’s growth-focused economic agenda. Investors have interpreted recent policy signals as supportive of continued fiscal stimulus and relatively accommodative monetary conditions, echoing elements of the Abenomics era. The Japanese government’s decision to appoint Ayano Sato of Aoyama Gakuin University and Toichiro Asada of Chuo University to the central bank board reinforced that view. Both incoming members are regarded as dovish in their policy stance, aligning with the administration’s preference for measures aimed at sustaining economic expansion. They will replace outgoing board members Asahi Noguchi and Junko Nakagawa, whose terms conclude in the coming months.
Market participants have described the ongoing surge as part of the Takaichi trade, a theme centered on expectations that looser monetary policy and increased public spending could weaken the yen while lifting corporate earnings and stock valuations. The Nikkei 225 and Topix have both logged multiple record highs in recent sessions, reflecting sustained foreign and domestic inflows into Japanese equities.
Elsewhere in the Asia-Pacific region, markets mostly traded higher, supported by positive cues from Wall Street. South Korea’s Kospi gained 1.65 percent, while the small-cap Kosdaq index added 0.57 percent. The Bank of Korea kept its benchmark interest rate unchanged at 2.5 percent, in line with market expectations. Shares of major chipmakers Samsung Electronics and SK Hynix rose 1.97 percent and 2.26 percent, respectively, benefiting from renewed optimism in the global technology sector.
Australia’s S&P/ASX 200 rose 0.8 percent and touched a record high in early trading, extending gains as investors reacted to strong global equity performance. In contrast, Hong Kong’s Hang Seng index slipped 0.62 percent, while mainland China’s CSI 300 edged down 0.2 percent, reflecting more cautious sentiment in Chinese markets.
Overnight in the United States, a technology-driven rally lifted major indexes. The S&P 500 advanced 0.81 percent to close at 6,946.13, and the Nasdaq Composite climbed 1.26 percent to 23,152.08. The Dow Jones Industrial Average added 307.65 points, or 0.63 percent, to settle at 49,482.15. Gains were underpinned by strong corporate earnings, particularly from Nvidia, whose fiscal fourth-quarter results exceeded expectations. The chipmaker reported adjusted earnings per share of $1.62, surpassing forecasts of $1.53, while revenue reached $68.13 billion, above estimates of $66.21 billion. A 75 percent surge in data center revenue highlighted continued demand for artificial intelligence infrastructure, reinforcing the broader tech rally.
The strength in U.S. equities provided a supportive backdrop for Asia markets, helping sustain risk appetite across the region. With the Nikkei 225 and Topix at record levels and global markets responding positively to robust technology earnings, investor focus is likely to remain on policy signals, currency movements, and corporate performance in the weeks ahead.
