TOKYO: Japan’s Nikkei share average ended higher for a second session on Thursday, tracking Wall Street’s gains in tech shares and buoyed by renewed optimism about Prime Minister Sanae Takaichi’s stimulus plan.
The Nikkei rose 0.57 percent to close at 57,467.83. The broader Topix climbed 1.18 percent to 3,852.09. Technology-related shares lifted the Nikkei index the most.
Artificial intelligence investor SoftBank Group increased 2.6 percent, while chipmaking equipment maker Tokyo Electron rose 2.9 percent.
Takaichi was formally reappointed as prime minister on Wednesday, following a historic general election victory earlier this month. She has pledged to increase investment through targeted public spending to boost consumption and revitalise economic growth.
“With all cabinet ministers reappointed, swift policy execution is expected, which is seen as another positive for the stock market,” said Ryotaro Sawada, senior analyst at Tokai Tokyo Intelligence Laboratory, in a research note.
Ministry of Finance data on Thursday showed that foreign investors pumped a net 1.42 trillion yen (USD9.16 billion) into Japanese stocks in the week to February 14, the most since October 11, and helped lift the nation’s share gauges to historic levels after Takaichi’s win.
Japan Steel Works, a key supplier of large forged components for the nuclear industry, surged 9.2 percent after a media report said construction of next-generation nuclear reactors was under consideration for the second round of Japan’s planned USD550 billion investment in the US.