Nikkei Hits Record High for Third Consecutive Day, Asian Markets Join the Rally
Asian stock markets experienced a broad rally on Thursday, led by Japan’s Nikkei index, which reached a new all-time high for the third consecutive day. The positive sentiment was driven by optimism surrounding the Japanese Prime Minister’s pro-growth policies and the strong performance of technology stocks on Wall Street.
The Nikkei 225 index jumped 1.1% to 59,199.31, marking a new record high for the third consecutive day. The broader TOPIX index also rose 1.45% and reached a new peak.
The rally in Japanese stocks was supported by a phenomenon known as the “Takaichi trade,” which reflects investor optimism towards the economic agenda of Prime Minister Sanae Takaichi, seen as continuing the spirit of Abenomics.
The Japanese government on Wednesday appointed Ayano Sato from Aoyama Gakuin University and Toichiro Asada from Chuo University as members of the central bank’s board. Both are known for their dovish views, in line with a loose monetary approach that supports growth stimulus.
The appointments reinforced market expectations of accommodative monetary policy and more aggressive fiscal spending, which could support stocks while putting pressure on the yen.
The gains were not limited to Japan. The KOSPI index in South Korea rose 1.65%, while the Kosdaq gained 0.57%.
The Bank of Korea decided to maintain its benchmark interest rate at 2.5%, as expected by the market.
Shares of chipmakers such as Samsung Electronics and SK Hynix rose 1.97% and 2.26%, respectively, following the global technology sector rally.
In Australia, the S&P/ASX 200 index rose 0.8% and briefly touched a record high in early trading.
Meanwhile, Hang Seng Index futures were trading at 26,947, higher than the previous closing level of 26,765.72.
The positive sentiment in Asia followed the rally on Wall Street. The S&P 500 index rose 0.81% to 6,946.13, while the Nasdaq Composite soared 1.26% to 23,152.08. The Dow Jones Industrial Average gained 0.63% to 49,482.15.
The gains were led by technology stocks, particularly Nvidia, which reported better-than-expected fourth-quarter earnings.
Nvidia’s revenue jumped 75% year-on-year in the data center segment. The company reported adjusted earnings per share (EPS) of $1.62, exceeding the estimate of $1.53. Revenue was $68.13 billion, above the projection of $66.21 billion.
The performance underscored the dominance of artificial intelligence (AI)-based stocks in driving the global rally, and served as an additional catalyst for the strengthening of Asian markets today.