Nikkei Tops 58,000 for First Time as 'Takaichi Trade' Powers Rally

Overview

• The Nikkei 225 rose as high as 58,015.08 on Feb. 12 before trading up 0.3%–0.4% near 57,800, leaving the index about 15% higher year to date as the Topix gained roughly 0.7%–0.8%.
• Market gains reflect expectations that the Liberal Democratic Party’s decisive win will clear the way for spending and tax-relief measures.
• Earnings drove sharp stock moves, with Shiseido up 14% and Mitsui Kinzoku up 11%, while Sharp fell 11% and Baycurrent dropped 8.6%.
• Honda shares declined about 3% after the automaker reported a 61% plunge in third-quarter profit.
• A Nomura strategist warned of growing signs of overheating, and investors are watching SoftBank’s results for details on funding large AI investments.