FX.co ★ Japanese Shares Rise as Election Focus Builds

The Nikkei 225 Index saw a modest rise of 0.2% on Thursday, reaching approximately 4,400, while the Topix Index experienced a slightly higher increase of 0.4%, moving up to 3,670. This recovery follows losses incurred in the prior session. Investors are now focusing on the upcoming lower house elections scheduled for the weekend. Prime Minister Sanae Takaichi announced this snap election to seek public support for her agenda, which includes increased government expenditure and other significant policy initiatives. Additionally, market participants are eagerly anticipating Japan's fourth-quarter GDP report, set to be released next week, with expectations of an economic rebound following a sharp decline in the previous quarter. On the stock front, leading gains were notable among major components such as Lasertec, which increased by 0.8%, Toyota Motor at 1.7%, Shin-Etsu Chemical rising by 0.7%, JX Advanced Metals up by 2.3%, and Hitachi climbing 1.1%. In corporate developments, Renesas Electronics surged by 7% after revealing plans to divest its Timing business to SiTime for $3 billion.