Low angle view of tall buildings in Tokyo, Japan, showcasing diverse architectural styles<\/p>\n
George Pachantouris | Moment | Getty Images<\/p>\n
Japan’s Nikkei 225 on Thursday hit 58,000 for the first time in history, extending its post-election rally to fresh highs, fueled by renewed confidence in domestic politics and the ruling administration’s economic agenda.<\/p>\n
The benchmark index subsequently pared gains and was trading marginally higher at 57,663. The broader Topix advanced 0.68%.<\/p>\n
Japanese stocks have notched several fresh highs in recent days, fueled by the so-called “Takaichi trade<\/a>,” following Prime Minister Sanae Takaichi’s landslide victory in the Lower House, said market watchers.<\/p>\n Global investment firm GMO noted that Takaichi’s snap-election landslide gives her an unusually strong, multi-year mandate to execute policy, which they view as broadly supportive for Japan’s markets and corporate sector.<\/p>\n While equities have rallied and bond investors appear reassured, GMO notes intervention risks could rise if the yen approaches 160 against the greenback.<\/p>\n Other markets in Asia also shrugged off a stronger-than-expected U.S. payrolls data that has dampened expectations for Federal Reserve rate cuts and sent U.S. stocks lower overnight. <\/p>\n South Korea’s Kospi jumped as much as 2.1% to a record high of 5,466.9 points, before paring gains to trade 1.82% higher. The small-cap Kosdaq traded relatively flat.<\/p>\n Singapore’s benchmark index crossed 5,000 for the first time.<\/p>\n Australia’s\u00a0S&P\/ASX 200<\/a> was up 0.42% in early trade. <\/p>\n Hong Kong’s Hang Seng Index<\/a> lost 0.23%, while mainland China’s CSI 300 added 0.12%.<\/p>\n Overnight in the U.S., the\u00a0Dow Jones Industrial Average<\/a>\u00a0snapped a three-day win streak after a better-than-expected\u00a0January jobs report<\/a>.<\/p>\n The blue-chip index lost 66.74 points, or 0.13%, and closed at 50,121.40. The\u00a0S&P 500<\/a>\u00a0was nearly flat at 6,941.47. The\u00a0Nasdaq Composite<\/a>\u00a0dropped 0.16% to end at 23,066.47.<\/p>\n The Bureau of Labor Statistics’ January nonfarm payrolls report showed job growth of 130,000 in January. Economists polled by Dow Jones had estimated gains at 55,000. Jobs growth in December was downwardly revised to 48,000.<\/p>\n Strong labor market has reduced the odds for interest rate cuts by the\u00a0Federal Reserve<\/a>.<\/p>\n