Japanese equities extended gains for a second consecutive session on Tuesday, with the Nikkei 225 setting another new all-time high, buoyed by a surge in technology stocks. The rally followed a significant partnership between OpenAI and AMD, while investor sentiment was further supported by expectations around the incoming prime minister, Sanae Takaichi.
As of 8:10 a.m. Bangkok time, the Nikkei 225 climbed 0.23% to 48,144.94 points. The broader TOPIX index also advanced, ticking up 0.25% to 3,234.11 points.
Technology names led the charge, with Advantest jumping more than 4%, and Tokyo Electron gaining 2%. Lasertec added 1.35%, while Renesas Electronics posted a rise of 4.85% in morning trading.
Yesterday, OpenAI finalized a substantial agreement with Advanced Micro Devices (AMD), securing up to 6 gigawatts of the chipmaker’s advanced graphics processing units (GPUs) over several years.
The benchmark Nikkei notched new records on Monday, as investors digested the weekend decision by Japan’s long-ruling Liberal Democratic Party to select Sanae Takaichi—a prominent conservative voice—as their new leader. Her appointment, reported by the source, clears the way for her to become Japan’s first female prime minister.
Sanae Takaichi has been elected to lead Japan’s Liberal Democratic Party (LDP), setting the stage for her historic appointment as the country’s first female prime minister. Takaichi garnered 185 votes in a decisive run-off against Shinjiro Koizumi, Japan’s current agriculture minister, following an initial round in which none of the five contenders achieved a majority, according to local media reports.
Takaichi is now set to take over as head of the LDP from Shigeru Ishiba, who resigned unexpectedly in September after the coalition led by the party suffered losses in both legislative chambers. Barring opposition, Takaichi’s appointment as prime minister is expected to be formalized during a parliamentary session anticipated around October 15.
Known for her conservative values, Takaichi stands out as more fiscally liberal than her predecessors, with pledges that include inflation relief for households and proposals for tax reductions. However, she has yet to provide concrete plans for funding these policies, amid increased caution among bond investors.
On the monetary policy front, Takaichi has voiced opposition to the recent interest rate increases by the Bank of Japan, a stance that could prompt the central bank to reconsider any immediate further hikes.
