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Nikkei Sets New High on Dissolution Reports as Yen Nears ¥159

Traders bet on fiscal expansion under a potential early election.

Overview

  • Japan's Nikkei 225 closed at a record ¥53,549 on Jan. 13 following reports that Prime Minister Sanae Takaichi is considering dissolving the lower house.
  • Tokyo shares extended gains at the open on Jan. 14, with the index up about ¥501 to ¥54,050.38 by 9:15 a.m.
  • Expectations for more aggressive fiscal spending strengthened after the dissolution reports circulated in domestic media.
  • The yen weakened in New York trading to about ¥159.11–21 per dollar as investors priced in potential fiscal deterioration.
  • U.S. stocks pulled back, with the Dow down about $398 and the Nasdaq slightly lower, as profit-taking set in and President Trump's call to cap credit‑card interest at 10% pressured card-related shares such as Visa.