The Japanese stock market opened higher and continued to rise on Wednesday. By the close, the Nikkei 225 Index had increased by 1.02%. The Topix Index rose by 1.21%. The US Dollar appreciated against the Japanese Yen by 0.23%. Spot gold rebounded above $4,900, with a daily increase of 1.08%.
Against the backdrop of several major Asian markets being closed for the Lunar New Year holiday and subdued trading activity, the Japanese market became the focal point. The resignation of the entire Japanese cabinet and the upcoming election of a new prime minister, coupled with overnight stabilization in US stocks, contributed to this shift.$Nikkei 225 (.N225.JP)$The downward trend that had lasted for three consecutive days came to an end, with the yen depreciating and falling lower.
According to CCTV News, during the second round of voting in the prime ministerial nomination election in Japan's House of Councillors, Sanae Takachi, the president of the Liberal Democratic Party, secured more than half of the votes, confirming her election as Japan’s new prime minister.
Spot silver surged by 2.81% during the day, reaching $75.607 per ounce.
The Japanese stock market opened higher and continued to rise on Wednesday. By the close, the Nikkei 225 Index had risen by 1.02%, with intraday gains once soaring over 600 points, firmly surpassing the 57,000-point level. The Topix Index climbed by 1.21% to reach 3,807.25 points.
According to CCTV News, on the morning of the 18th, the entire cabinet of Sanae Takachi resigned. At 1:00 PM local time on the 18th (noon Beijing time), both chambers of Japan's parliament will hold separate prime ministerial nomination elections. The newly elected prime minister will form a new cabinet on the same day. According to Japan’s constitution, the cabinet must resign en masse when the Diet is convened for the first time after a general election of the House of Representatives.
Additionally, Trump officially announced the launch of a $550 billion 'Japan Investment in America Fund,' with the initial focus on oil and gas, power generation, and critical minerals, providing extra support to market sentiment.
The rise in Japanese stocks also lifted the Asia-Pacific index. The MSCI Pacific Index gained over 1%. Trading volumes were notably low due to multiple regional markets being closed. South Korea’s stock market was also closed for the Spring Festival holiday.
Investor expectations that the new cabinet might continue or intensify economic stimulus policies drove simultaneous increases in Japanese stocks and bonds. Yields on Japanese government bonds across all maturities declined comprehensively.$Japan 10-Year Treasury Notes Yield (JP10Y.BD)$Dropped to around 2.134%.
Under the expectation of fiscal easing,$USD/JPY (USDJPY.FX)$Short-term rise, reported at 153.635.
The Reserve Bank of New Zealand kept interest rates unchanged, with Governor Berriman stating no plans to hike rates until stronger economic growth and greater inflationary pressures are observed.
$NZD/USD (NZDUSD.FX)$Fell more than 0.9%, breaking below the key level of 0.600. The policy-sensitive 2-year New Zealand government bond yield extended its decline as traders scaled back expectations for rate hikes by the Reserve Bank of New Zealand. Market pricing for a rate increase before October fell from 90% to approximately 75%.
Spot gold opened lower on Wednesday but surged over 1% above its daily low, reclaiming levels above $4,900 per ounce. Silver also rebounded, rising more than 2%.
Editor/Melody