Tokyo’s benchmark Nikkei 225 stock index broke through the 50,000 ceiling to set a new intraday record high on Monday.The 225-issue Nikkei Stock Average rose 744.31 points, or 1.51 percent, from Monday to 49,929.81. The broader Topix index was up 25.10 points, or 0.77 percent, at 3,273.55, after also hitting an all-time intraday high.
The U.S. dollar climbed above the 151 yen line in Tokyo as traders sold the yen, perceived as a safe asset, on the gains in the Nikkei index, dealers said.
At noon, the dollar fetched 151.10-14 yen compared with 150.71-81 yen in New York and 150.74-76 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1633-1635 and 175.79-86 yen against $1.1637-1647 and 175.45-55 yen in New York and $1.1662-1663 and 175.80-84 yen in Tokyo late Monday afternoon.
After finishing Monday at a record high, the Nikkei index extended gains with Takaichi set to be elected Japan’s leader in parliament Tuesday afternoon after striking a coalition agreement with the Japan Innovation Party.
Investors had generally factored in the launch of a new government led by Takaichi, but some still bought stocks on anticipation that political stability will allow her to implement expansionist fiscal policies, analysts said.
Receding concerns about U.S.-China trade tensions also boosted investor sentiment, after U.S. President Donald Trump said Monday he wants “to be good to China” and anticipates a “fantastic deal” for both countries in his upcoming meeting with Chinese President Xi Jinping, they said.
