Osanbashi in Yokohama on December 10, 2022.
Yuichi Yamazaki | Afp | Getty Images
Japanese indexes hit record highs Wednesday on expectations that Prime Minister Sanae Takaichi could call for a snap election, likely in February.
If called, it will be Takaichi’s first time facing Japan’s voters in an election. Takaichi has been a proponent of looser monetary policy and has announced a massive stimulus package for Japan’s economy, which is seen as favorable to markets.
The Nikkei 225 index rose 1.61%, crossing the 54,000 mark for the first time, after gaining over 3% to hit a record high Tuesday. The Topix also continued to push fresh highs and gained 0.87%.
The Japanese yen has also weakened past the 159 mark against the dollar, reaching its lowest level since July 2024, when Japanese authorities intervened to stop the yen’s slide.
Other Asia markets were mixed, with South Korea’s Kospi up 0.14%, while the small-cap Kosdaq was 0.49% lower.
Hong Kong’s Hang Seng index was 0.83% higher, led by consumer non-cyclical and basic materials stocks, while the mainland Chinese CSI 300 rose 1.11%.
Australia’s S&P/ASX 200 was unchanged.
On the commodities front, spot silver breached the $90 mark for the first time, rising 3.7%. The metal has been one of 2025’s greatest gainers.