December 10, 2022, Osanbashi, Yokohama.
Yuichi Yamazaki | AFP | Getty Images
Japan’s indexes hit record highs on Wednesday on expectations that Prime Minister Sanae Takaichi could call a snap election, possibly in February.
Reports of a surprise general election amid huge popularity for Japan’s leader have stimulated so-called “high market trade,” characterized by a weak yen and a rising stock market that favors Japanese exports, amid expectations that he will advocate policies to stimulate the economy.
of Nikkei Stock Average The index rose 1.48%, surpassing the 54,000 mark for the first time, hitting a record high of 54,341.23. TOPIX also hit a new high, rising 1.26% to 3,644.16.
Japanese circle The currency also fell by more than 159 yen against the dollar, its lowest level since July 2024, when Japanese authorities intervened to prevent the yen from weakening.
“Foreign investors tend to buy Japanese stocks around the time of House elections, and large-cap, high-ROE, high-beta stocks tend to perform better,” Bank of America said in a note Tuesday.
Other Asian markets were mixed, but South Korea’s Kospi The small-cap Kosdaq closed 0.72% lower at 942.18, while it rose 0.65% to 4,723.1.
hong kong Hang Seng Index Mainland China’s CSI 300 reversed its gains and closed 0.4% lower at 4,741.93, led by consumer non-cyclicals and tech stocks, which rose 0.33% in the final hour of trading.
Australia’s S&P/ASX 200 rose 0.14% to close at 8,820.6.
On the commodity side, spot silver breached the $90 mark for the first time, rising 3.7%. The metal was one of the biggest gainers in 2025.
