Japan's Nikkei Index Surpasses Record High, Exceeds 59,000 Level Amid Takaichi Trade Optimism

Global Markets Report - February 26, 2024

Japan's Nikkei 225 Reaches New Record

• The Nikkei 225 surged 1.1% to an all-time high of 59,199.31, marking its third consecutive session of record gains.
• The broader Topix index also surged 1.45%, reaching a fresh peak.

The Nikkei 225 has recently touched multiple record highs, supported by the "Takaichi trade," as investors bet that growth-focused policies linked to Sanae Takaichi will boost equities while putting downward pressure on the yen through looser monetary policy and higher fiscal spending.

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Central Bank Appointments

• The Government of Japan appointed Ayano Sato of Aoyama Gakuin University and Toichiro Asada of Chuo University as members of the central bank board.
• Both appointments are seen as dovish in their policy outlook, consistent with the approach of Prime Minister Sanae Takaichi.

Asian Markets

• Asian shares rose for a fourth straight session as recent volatility triggered by concerns over the impact of artificial intelligence eased.
• The Kospi climbed 1.65% in South Korea, while the small-cap Kosdaq added 0.57%.
• The Bank of Korea kept its benchmark interest rate unchanged at 2.5%, in line with markets' expectations.

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US Stock Market

• US equities closed higher on Wednesday, extending a technology-driven rally to reach two-week highs.
• The Dow Jones Industrial Average rose 307.65 points, or 0.63%, to 49,482.15, while the S&P 500 advanced 56.06 points, or 0.81%, to 6,946.13.
• The Nasdaq climbed 288.40 points, or 1.26%, to close at 23,152.08.

Nvidia Reports Strong Q4 Revenue

• Nvidia, a key player in the AI boom, reported fourth-quarter revenue of $68.13 billion, surpassing analyst expectations.
• Its shares rose about 3% in extended trading.