FX.co ★ Japanese Shares Extend Rally on Takaichi Trade

On Tuesday, the Nikkei 225 climbed by 0.9%, surpassing 49,600, while the broader Topix Index advanced by 0.5% to reach 3,265. This surge continued their record-breaking rally in anticipation of a parliamentary vote expected to appoint Sanae Takaichi as Japan's next prime minister. The ruling Liberal Democratic Party successfully formed a coalition with the Japan Innovation Party, with plans to advocate for expansionary fiscal policies and spending reforms. Nonetheless, doubts linger over the partnership's longevity and whether Takaichi might pursue more radical policies. Meanwhile, Bank of Japan board member Hajime Takata remarked on Monday that conditions were favorable for interest rate hikes, which tempered market enthusiasm. Among the top performers were SoftBank Group, which gained 2.3%; Advantest, increasing by 2.9%; JX Advanced, up by 3.3%; Mizuho Financial, rising by 1.7%; and Fast Retailing, which saw a 1.1% increase.