TOKYO: Japan’s Nikkei share average ended more than 1 percent higher on Thursday, driven by improving bets of Liberal Democratic Party (LDP) leader Sanae Takaichi becoming the next prime minister, spurring hopes of a revival in big spending.
The Nikkei rose 1.27 percent to close at 48,277.74, and the broader Topix gained 0.62 percent to 3,203.42.
The Japan Innovation Party emerged as a possible coalition partner for the LDP after its leader said the party would back Takaichi for the premiership if the two parties agreed on policy.
“The Takaichi trade is back,” said Shoichi Arisawa, general manager - investment research at IwaiCosmo Securities.
The Nikkei surged to a record high last week after Takaichi was elected as the LDP leader, paving the way for her to become the country’s next prime minister.
But that expectation faded after the LDP’s long-term partner Komeito left the coalition last week, leaving the LDP and opposition parties scrambling to form new alliances.
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