Japan's Nikkei stock average surged to a record high of 53,814.79 shortly after trading opened on January 13, fueled by reports of a possible snap election. The rally followed Wall Street gains and a weaker yen. Finance officials hinted at potential currency intervention.
Tokyo's Nikkei 225 stock average jumped 3.6% to a record 53,814.79 within the first 10 minutes of trading on January 13, following a public holiday. The broader Topix index also rose 2.4% to a peak of 3,599.31.
The surge caught up with Wall Street's rally, where the Dow and S&P 500 hit all-time highs overnight, led by strong tech shares. A sharply weaker yen, trading around ¥158 to the dollar, boosted overseas earnings for Japan's export-oriented firms, lifting investor sentiment.
Adding to the momentum, unconfirmed reports from the Yomiuri Shimbun suggested Prime Minister Sanae Takaichi might dissolve the Lower House this month, paving the way for a snap election in early February. As Japan's first female prime minister and a proponent of expansionary fiscal policy, Takaichi enjoys high approval ratings, and an early vote could solidify her position.
Bonds weakened, with the 10-year Japanese government bond yield reaching 2.135%. Finance Minister Satsuki Katayama, who met U.S. Treasury Secretary Scott Bessent over the weekend, expressed concerns about one-sided yen movements and noted that authorities have a 'free hand' for intervention if needed.
Investors shrugged off a U.S. Justice Department criminal probe into Federal Reserve Chair Jerome Powell. Standout performers included Toyota Motor, up 5%, and chip-testing equipment maker Advantest, gaining nearly 6%.
