TOKYO: Japanese stocks rallied to a record peak on Wednesday as markets reacted positively to a Reuters report that the new premier is preparing a sizeable stimulus package that includes measures to help households tackle inflation.
The Topix ended the day up 0.5 percent at a record-high closing level of 3,266.43, and earlier marked an all-time intraday high of 3.274.94.
The Nikkei finished down very slightly for the day at 49,307.79, missing out on extending Tuesday’s record closing high in the final moments of trading. The index recovered from losses as steep as 1.4 percent earlier in the session to be up as much as 0.3 percent after the Reuters report.
Fiscal and monetary policy dove Sanae Takaichi, who was confirmed as prime minister by parliament on Tuesday, is preparing an economic stimulus package expected to exceed last year’s 13.9 trillion yen (USD92.19 billion), government sources told Reuters on Wednesday.
The exact scale of the package is yet to be finalised, the sources added. It could be announced as early as next month.
Investors began the day by selling stocks to lock in profits following a 3.6 percent rally in the Nikkei over the previous two sessions, which culminated in an all-time intraday high of 49,945.95 on Tuesday.
The gains came as Takaichi secured the crucial backing of the Japan Innovation Party, also known as Ishin, that she needed to secure victory in the parliamentary vote on Tuesday.