Global markets today: Japan's Nikkei 225 tops 58,000 mark for the first time ever

Global markets today: Japan's Nikkei 225 extended its post-election rally on Thursday, February 12, and surged to a new record high of 58,000 for the first time. The gains were driven by renewed confidence in domestic political stability and the ruling government’s economic policies. Meanwhile, the Topix index rose 0.68%.

Japan’s Nikkei 225 briefly surged past the 58,000 mark for the first time in early trade before trimming some gains, extending its rally to about 15% so far this year.

In recent sessions, the benchmark has achieved multiple milestones as it climbed through 56,000, then 57,000, and now 58,000. The advance has been driven by the so-called “Takaichi trade” after Prime Minister Sanae Takaichi secured a decisive victory in the Lower House elections.

Market participants note that political optimism has become a major driver of the rally, supported by Takaichi’s strong mandate. Equity investors have responded positively to expectations of increased government spending, tax cuts, and a more proactive economic policy stance.

Global investment firm GMO, was quoted as saying by CNBC, that the snap-election landslide has handed Takaichi a rare, multi-year mandate to implement her policy agenda, which it believes is largely supportive for Japan’s financial markets and corporate sector.

Asian markets today

On Thursday, other Asian markets brushed aside stronger-than-anticipated U.S. payroll data, which has reduced hopes of Federal Reserve rate cuts and pushed U.S. equities lower overnight.

South Korea’s Kospi surged as much as 2.1% to hit a record 5,466.9 points before trimming gains to trade 1.82% higher, while the small-cap Kosdaq remained largely flat.

Singapore’s benchmark index breached the 5,000 mark for the first time. Australia’s S&P/ASX 200 advanced 0.42% in early trading.

Meanwhile, Hong Kong’s Hang Seng index futures stood at 27,206, slightly below the index’s previous close of 27,266.38.

US markets today

Wall Street ended lower on Wednesday night as the Dow Jones Industrial Average snapped its three-day winning streak following a stronger-than-expected January jobs report.

The Dow fell 66.74 points, or 0.13%, to close at 50,121.40. The S&P 500 finished nearly unchanged at 6,941.47, while the Nasdaq Composite declined 0.16% to settle at 23,066.47.

According to the Bureau of Labour Statistics, nonfarm payrolls rose by 130,000 in January, significantly higher than the 55,000 increase forecast by economists surveyed by Dow Jones. Meanwhile, December’s job growth figure was revised downward to 48,000.

The robust labour market data has dampened expectations of imminent interest rate cuts by the Federal Reserve.

The employment figures came after weaker-than-anticipated consumer data released on Tuesday, which showed that consumer spending remained flat in December, falling short of economists’ expectations of a 0.4% monthly increase.

(With inputs from agencies)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.