Japanese stocks hit record high

VTV.vn - In the Asia-Pacific market, the notable highlight on the morning of October 6 was that Japanese stocks just set a new record.

(Illustration photo: nikkei)

Tokyo stock market rose more than 4% to a record high in morning trading on October 6, while the yen fell after Ms. Sanae Takaichi became President of the Liberal Democratic Party (LDP) and is likely to become the first female Prime Minister in Japan's history.

In Tokyo, the Nikkei 225 index rose 4.5% to 47,835.36 points. Markets in Singapore and Manila also rose. Meanwhile, the Hang Seng index in Hong Kong fell 0.5% to 26,995.12 points. Stock markets in Sydney and Seoul also fell. Shanghai was closed for a holiday.

Investors are betting that Japan's new ruling party leader will implement monetary easing to revive the economy . The victory of Sanae Takaichi, who has previously advocated aggressive monetary easing and increased government spending, has sparked a new wave of optimism in Japanese markets.

However, the gains in Tokyo did not spread to other markets in Asia, where stocks were mixed after last week's strong gains, as investors continued to monitor lawmakers' efforts to end the US government shutdown.

After her victory on October 4, Ms. Takaichi pledged to implement measures to control inflation and boost the Japanese economy, rural areas and key industries such as agriculture and fisheries.

Takaichi tends to push the economy harder than others, said Taro Kimura, an economist at Bloomberg Economics. With inflation rising and long-term bond yields rising, Takaichi will have to balance her policy stance with reality so as not to add to cost-of-living pressures and cause large fluctuations in interest rates, Kimura added.

The market is likely to see an immediate return of the so-called “Takaichi trade,” according to Masamichi Adachi, chief Japan economist at UBS Securities, which he predicts will lead to rising stock prices (except for banks), a falling yen and higher long-term bond yields.

Japan's 30-year bond yield also rose sharply, reflecting concerns that Japan's already huge public debt will continue to rise under Ms. Takaichi.

Source: https://vtv.vn/chung-khoan-nhat-ban-cao-ky-luc-1002510061353351.htm