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Wall Street and Tokyo Set Records as Yen Slides, Japan Yields Hit 1999 High

Reports of an early lower-house election in Japan fueled a rally tied to expectations for continued fiscal support.

Overview

  • The Dow closed at 49,590.20 for a record finish and the Nasdaq also rose, with the S&P 500 ending at a new high.
  • U.S. stocks briefly fell after Jerome Powell disclosed a DOJ subpoena related to his congressional testimony on Fed building renovations, with the Dow down more than 490 points intraday before reversing.
  • Japan’s Nikkei 225 jumped above 53,000 for the first time and closed at a record 53,549.16 as investors reacted to reports of a possible early Diet dissolution.
  • The yen weakened to roughly ¥158 per dollar and Japan’s new 10-year government bond yield touched 2.140%, the highest since 1999.
  • Finance Minister Satsuki Katayama said she raised concern about the yen’s slide with the U.S. Treasury, which she said shared the worry.