FX.co ★ Japanese Shares Extend Record Rally

On Wednesday, the Nikkei 225 Index saw an increase of 1.1%, surpassing 54,100, while the broader Topix Index climbed 0.6% to reach 3,620, with both indices setting new record peaks. This growth is attributed to speculation over a potential snap election next month, heightening expectations for more robust fiscal stimulus. Prime Minister Sanae Takaichi is expected to capitalize on strong public support to implement expansionary policies, thereby enhancing growth prospects in the medium term. Meanwhile, investors are considering private sector data which indicate a slowdown in manufacturing activity due to trade tensions, and challenges facing the services sector from tourism-related issues, which collectively limit the Bank of Japan's ability to tighten monetary policy. Technological stocks drove the rally, with Advantest gaining 2.9%, Discoo Corp rising 2.8%, and Lasertec increasing by 2.9%. Additional key players, such as JX Advanced, Fast Retailing, and Sony Group, also experienced upward movement.