FX.co ★ Japanese Shares Rally to Start the Year

The Nikkei 225 Index surged by 2.5% to reach a two-month high, nearing 51,600 points, while the broader Topix Index achieved new all-time highs, surpassing 3,460, as Japan's market opened for its initial trading session of the year. This rally was predominantly driven by technology stocks, with Kioxia Holdings, a leader in flash memory, jumping over 8%. Other notable performers included SoftBank Group with a 3.6% increase, Advantest rising by 5.2%, and Tokyo Electron climbing 5.6%. Significant gains were also seen in the financial and industrial sectors, with companies such as Mitsubishi UFJ and Sumitomo Mitsui appreciating by 2% and 2.3%, respectively, and Mitsubishi Heavy Industries soaring by 7.1%. Investor sentiment in Japanese equities is buoyant, largely due to the anticipated positive impact of global advancements in artificial intelligence and related technologies on the country's tech sector. Furthermore, market attention is drawn towards policy measures from Tokyo, with Prime Minister Sanae Takaichi advocating for robust government expenditure. Meanwhile, traders continued to evaluate the ramifications of the recent U.S. strike on Venezuela over the weekend.