Nikkei 225 breaches 58,000 as Japan rally persists after election
Nikkei 225 breaches 58,000 as Japan rally persists after election
Japan's Nikkei 225 climbs past 58,000 for the first time post-election, with broader Asian markets steady despite strong US payrolls data.
Tokyo — Japanese stocks kept their rally alive on Thursday, with the Nikkei 225 breaching 58,000 for the first time after the recent election, underscoring robust momentum in the market.
The move came even as other Asian markets shrugged off firmer US payrolls data that cooled expectations for aggressive Federal Reserve rate cuts and sent Wall Street lower overnight.
Traders point to the so-called Takaichi trade as a driver, a reference to the recent political shifts that have helped lift sentiment in Japanese equities.
In intraday action, the benchmark index touched as high as 58,015.08 before settling lower, and the Nikkei was around 57,874.61 late in the day, up about 0.4% for the session.
For 2026, the Nikkei has climbed roughly 15%, while the broader Topix rose about 0.8% to 3,884.16 as markets resumed trading after a holiday.
Analysts say the rally could be fragile, with gains likely to hinge on global cues, including US payrolls data and expectations for the pace of Fed policy moves.
Investors also weighed the health of domestic catalysts and the possibility of further shifts in policy or fiscal stance that could sustain the run.
As investors rotate into cyclicals and export-heavy names, the mood remains cautiously upbeat about Japan's post-election trajectory.
