Japanese stocks hit another record high as expectations of snap poll rise
Japanese equities surged to historic levels Wednesday, fueled by mounting speculation that Prime Minister Sanae Takaichi will call a snap election in February, triggering a wave of bullish bets on the nation’s economic outlook.
The Nikkei 225 climbed 1.48% to close at a record 54,341.23, breaching the 54,000 level for the first time. The broader Topix index also set a new peak, gaining 1.26% to 3,644.16. The rally forms part of the so-called “Takaichi trade,” characterized by a weakening yen—beneficial for Japan’s export-heavy market—and rising stock prices amid expectations that the popular leader would pursue further economic stimulus.
The Japanese yen softened past 159 against the U.S. dollar, hitting its lowest level since July 2024, when authorities last intervened to support the currency. Bank of America noted in a recent report that overseas investors tend to increase holdings of Japanese stocks around election periods, favoring large-cap, high-ROE, and high-beta shares.
Mixed Performance Across Asia
Other Asian markets showed diverging trends:
South Korea’s Kospi rose 0.65%, while the Kosdaq fell 0.72%.
Hong Kong’s Hang Seng edged up 0.33%, led by consumer and tech stocks.
Mainland China’s CSI 300 reversed early gains to close 0.4% lower.
Australia’s S&P/ASX 200 added 0.14%.
In commodities, spot silver continued its remarkable run, breaching the $90 per ounce mark for the first time with a 3.7% gain, cementing its status as one of 2025’s top-performing assets.
U.S. Markets Dip Amid Policy Uncertainty
Overnight, U.S. indices retreated as investors weighed a series of proposals from President Donald Trump. The S&P 500 fell 0.19%, the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq Composite declined 0.1%. Notably, shares of JPMorgan sold off despite the bank reporting better-than-expected earnings.
The contrasting performances highlight how regional political developments and commodity surges are shaping market sentiment as the global economic calendar fills with event risk.
