FX.co ★ Japanese Shares Rally to Fresh Record Highs

The Nikkei 225 surged by more than 3% to approximately 53,700 on Tuesday, accompanied by a 2% rise in the broader Topix Index, which reached 3,585. This upward movement marked new all-time highs for Japanese equities as the markets reopened following an extended holiday weekend. Japanese stocks received robust interest as domestic companies are perceived as key beneficiaries of advancements in artificial intelligence and other cutting-edge technologies. Moreover, international investors are increasingly attracted to the country's promising earnings and growth prospects. Leading the charge, technology stocks experienced significant gains, with Advantest soaring 9.6%, SoftBank Group rising 4.3%, and Tokyo Electron advancing 7.5%. Other major stocks also posted gains, including Toyo Engineering, which increased by 3.2%, Mitsubishi UFJ, which grew by 3.5%, and Toyota Motor, which climbed 4.8%. However, a cloud of political uncertainty persisted, fueled by speculation that Prime Minister Sanae Takaichi might dissolve parliament as early as next month.