Japan's Nikkei 225 hit a record high on optimism over new PM Sanae Takaichi’s pro-stimulus policies.

Japan's Nikkei 225 surged to a record closing high of 49,185.50, gaining 3.4%, as markets responded positively to Sanae Takaichi’s expected appointment as prime minister following a coalition agreement with the Japan Innovation Party. The rally, driven by optimism over continued fiscal stimulus and Abenomics-style policies, lifted tech and industrial stocks, including SoftBank Group, Yaskawa Electric, and Fanuc. The broader Topix index rose 2.5%. Japanese government bond yields climbed, particularly on shorter maturities, reflecting anticipation of potential rate hikes, while the yen weakened to 151 per dollar before retreating to 150. Analysts cautioned that Takaichi’s policy influence may be limited due to Ishin’s non-cabinet role. Meanwhile, Ryohin Keikaku fell 2.5% after suspending online operations due to a cyberattack on a logistics partner.