Japan's leading stock index, the Nikkei 225, once again reached a record high closing price on October 9th. After a brief pause on the 7th, it reached a new high just two days later, bolstering expectations that the Japanese stock market's upward trend will continue for the time being.
On this day, the Nikkei closed at 48,580, up 1.77% from the previous trading day. During the session, it even rose to 48,597, breaking the Nikkei 225's all-time high. The Japanese stock market has recently been on an upward trend, fueled by political changes and news of active investment by major corporations.
One of the key factors is the election of Sanae Takaichi as president of the Liberal Democratic Party. Elected as the new president of the ruling Liberal Democratic Party on October 4th, she has pledged to expand fiscal spending and pursue economic stimulus measures, and investor expectations for her policies are being reflected in the stock market. Takaichi is expected to assume the post of Prime Minister within this month, and the political event is having a significant impact on the market, to the point that the term "Takaichi Trade" has even emerged.
In addition, news of a major acquisition by SoftBank Group also drove the index's surge that day. The previous day, SoftBank announced its acquisition of the robotics business unit of Swiss industrial technology giant ABB. Following this announcement, SoftBank's stock price surged a staggering 11.43%, contributing significantly to the index's rise. The company's investments in artificial intelligence (AI) and heightened market expectations for AI technology appear to have stimulated overall investor sentiment.
In the financial industry, concerns are being raised about the overall overheating of the Japanese stock market, as political variables and the rise of technology stocks intertwine. However, some local experts believe there is still room for growth. One financial industry insider stated, "While some signs of overheating are emerging, expectations for the Takaichi administration's policies and the AI theme are alternately driving the market."
This trend, if the Japanese government's policy direction becomes more concrete and large corporations continue to invest in technology and engage in global M&A, could strengthen the optimistic outlook for the Japanese stock market in the long term. In particular, as political stability and growth strategies become more evident, the inflow of funds from overseas institutional investors could increase. Therefore, attention is focused on whether the market will continue to rise in the future.
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