FX.co ★ Nikkei Tops 50,000 Ahead of Takaichi-Trump Meeting

The Nikkei 225 Index surged by 2.46%, concluding at 50,512, while the more comprehensive Topix Index rose by 1.7% to reach 3,325 on Monday. Both indices achieved new record highs as investors anticipated the meeting between the newly appointed Prime Minister Sanae Takaichi and US President Donald Trump, scheduled for Tuesday. Market sentiment was further lifted by optimism regarding an imminent trade deal between the US and China, ahead of the Trump-Xi summit in South Korea on Thursday. This optimism was fueled by the consensus reached on critical matters by negotiators from both nations over the weekend. Additionally, investors were aligning themselves in anticipation of a potential rate cut by the Federal Reserve this week, prompted by recent soft US inflation data. Meanwhile, the Bank of Japan is expected to continue with its current policy approach. The gains were widespread, with notable performances from leading companies such as SoftBank Group (up 6.7%), Fujikura (up 8%), Advantest (up 6.5%), Kawasaki Heavy (up 9%), and JX Advanced (up 7.1%).