Japanese market Nikkei crosses 50,000 for the first time: ₹ 8.12 lakh crore investment expected from new Prime Minister Takaichi, now up by 2.5%

The Japanese market trades in two sessions a day, the first from 9 am to 11:30 am and the second from 12:35 pm to 3:00 pm.

Japan’s market index Nikkei is trading at the level of 50,440 today i.e. Monday, October 27, rising 1440 points (2.3%). This is the first time when it has crossed the level of Rs 50 thousand.

It closed 2.1% higher at 50,337.36 at the end of the morning session. The Japanese market trades in two sessions a day, the first from 9 am to 11:30 am and the second from 12:35 pm to 3:00 pm.

This rise in the market is due to the growth policy of the new Prime Minister Takaichi, which is giving positivity to the market. The market expects the government to invest $92.2 billion (about Rs 8.12 lakh crore).

There are four main reasons for the rise of Nikkei in the Japanese market.

• Growth policies of new Prime Minister Sanae Takaichi: She is focusing on development, due to which investors are confident that the economy will get a boost.
• Expectations of a large fiscal stimulus package: Takaichi has promised to increase spending, such as a package of more than 13 trillion yen, which is giving positivity to the market.
• Exporters benefit due to weak yen: Due to weak currency, the earnings of Japanese companies are increasing, especially in the tech and manufacturing sectors.
• Structural reforms and improving corporate profits: Takaichi’s reform agenda is boosting profitability in the technology and energy sectors, plus a boost from global trade deals like the US-Japan agreement.

Expert said – Government is focusing on development

Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management, said,

The Nikkei’s rise was supported by expectations from the Takaichi administration, whose policies are focused on growth. The market kept buying shares continuously. There was a slight decline in the Nikkei after Takaichi’s election, but it did not last long as investors who had been left behind in the recent rally bought shares on the decline.

Norihiro Yamaguchi, lead Japanese economist at Oxford Economics, said:

Fiscal packages are generally welcomed by the market, even if they have little direct impact on the overall economy. The stock market also responded strongly as Takaichi’s policy focused on strategic investment and market-friendly sectors.

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