Japanese political developments push Nikkei 225 index up

Japanese stocks continued to set new records in the trading session on October 7, after Ms. Sanae Takaichi - a supporter of economic stimulus measures - was elected as leader of the ruling party over the weekend.

Stock index board in Tokyo, Japan. Photo: Kyodo/TTXVN

The victory of Sanae Takaichi, who is expected to become Japan's next prime minister this month, in the race to head the ruling Liberal Democratic Party (LDP) has raised optimism that she will launch a campaign of monetary easing.

The move sent the Nikkei 225 index soaring nearly 5% in the previous session on Monday and sent the yen tumbling, as investors began to doubt the Bank of Japan's (BoJ) ability to continue with its rate hikes.

The Nikkei 225 index continued to rise in this session, although it narrowed its increase compared to the beginning of the session and closed only slightly up to 47,950.88 points. The yen also maintained its downward trend.

Ms. Charu Chanana of investment firm Saxo Markets said that Ms. Takaichi's victory removed uncertainty about the direction of Japan's policy. According to Ms. Takaichi's agenda is expected to continue the combination of fiscal support and ultra-loose monetary policy. Ms. Chanana added that for investors, this continuity means there will be no sudden tightening of policy and coordination between the government and the BoJ will be maintained.

Technology stocks led the gains in the session, as the announcement of a partnership between semiconductor maker Advanced Micro Devices (AMD) and OpenAI to develop artificial intelligence (AI) data centers boosted buying sentiment. The deal came after OpenAI and Nvidia signed a contract to supply equipment worth more than $100 billion.

Most other markets also rose, including Singapore, Wellington, Mumbai, Bangkok, Manila and Jakarta. Meanwhile, markets in China's Hong Kong and Shanghai, as well as Seoul, were closed for a holiday.

Meanwhile, in Vietnam, at the end of this session, the VN-Index decreased by 10.2 points, or 0.6%, to 1,685.3 points, while the HNX-Index lost 1.82 points, or 0.66%, to 272.87 points.

Source: https://baotintuc.vn/thi-truong-tien-te/dien-bien-chinh-truong-nhat-day-chi-so-nikkei-225-di-len-20251007154533459.htm