The Nikkei average stock price surged past the 58,000 mark for the first time, driven by strong US employment data and significant buying from foreign investors following the recent election.
On December 12, the Tokyo stock market saw the Nikkei average stock price continuing its upward trend, surpassing 58,000 points for the first time in history during trading sessions. This rally was fueled by US employment data released on December 11, which exceeded market expectations and alleviated concerns regarding a potential slowdown in the US economy. Additionally, following the significant victory of the ruling Liberal Democratic Party in the recent House of Representatives election held on December 8, foreign investors were encouraged to buy, contributing to the unprecedented rise in stock prices.
The opening price on December 12 for the Nikkei was 57,864.74, reflecting a gain of 214 points from the previous trading day. This surge has been positively received in light of Prime Minister Sanae Takaichi's commitment to aggressive fiscal policies, adding to investor confidence and continuing the market's ascent through the election period. The combination of favorable domestic policy outlooks and external economic indicators has created a robust investment environment.
In contrast, on December 11, the foreign exchange market witnessed a stronger yen against the dollar, with rates briefly dipping into the 152 yen range. This fluctuation was attributed to underwhelming US retail data raising concerns about personal consumption. However, the stronger-than-expected US employment figures provided an impetus for dollar purchases, leading to a stabilization of the currency pair, which traded in the low 153 yen range on December 12. The intricacies of these financial movements indicate not only market reactions to immediate economic data but also the broader implications for investor sentiment in the region.
