TOKYO: Japan’s Nikkei share average surged to a record high on Tuesday, while the yen sank to an all-time low against the euro and Swiss franc as investors bet on more fiscal stimulus amid reports the government may call a snap election next month.
Japanese government bonds tumbled, pushing up yields on 20-year paper to a record peak as local media said Prime Minister Sanae Takaichi plans to dissolve parliament when it reconvenes on January 23, setting up a for general election as soon as February 8.
The Nikkei jumped as much as 3.6 percent to a record 53,814.79, and hovered near that level throughout the session.
The broader Topix rose as much as 2.4 percent to 3,599.31, also an all-time peak.
A public holiday on Monday augmented the buying, as Japanese equities caught up with Wall Street’s two-day rally to record highs.
Equity market sentiment was also supported by a rapid decline in the yen since the end of last week, as a softer currency increases the value of overseas earnings at Japan’s heavyweight exporters.