🚀 Japan’s Nikkei Hits Historic 44,000 Mark‎ Stimulus hopes, trade optimism, and AI chip surge drive record rally 🇯🇵📈

Nikkei Breaks 44,000 Barrier for the First Time Amid Trade Progress and Stimulus Prospects TOKYO: Japan’s benchmark Nikkei 225 index made history on Tuesday, surpassing the 44,000 mark for the first time as investor confidence soared on the back of improved trade outlooks and expectations of enhanced government stimulus. ‎By midday, the index was up 0.2%, settling at 43,732.80. Meanwhile, the broader Topix index saw a modest rise of 0.06% at the trading break, after initially climbing 0.77%. ‎Market sentiment received a boost after Japan’s chief tariff negotiator, Ryosei Akazawa, announced that U.S. tariffs on Japanese automobiles would be lowered by September 16. This update brought clarity to a previously uncertain trade agreement discussed in July, reigniting optimism about Japan’s export outlook. ‎Equities also gained momentum following the resignation of Prime Minister Shigeru Ishiba, a known fiscal conservative. The leadership race within the ruling Liberal Democratic Party (LDP) now includes Sanae Takaichi, a staunch advocate for aggressive stimulus measures and monetary easing. Her candidacy suggests a possible shift toward more expansionary policies. Analysts at BofA Securities noted that political instability may persist unless the ruling coalition swiftly calls a general election to regain its majority in the Lower House. Regardless of who assumes LDP leadership, the government will likely need to collaborate with opposition parties—many of whom support increased fiscal spending—pushing the administration toward more pro-growth policies in upcoming debates. ‎In the tech sector, semiconductor-related stocks led the rally, buoyed by gains in U.S. counterparts, particularly Broadcom. The American chipmaker recently forecast significant revenue growth tied to artificial intelligence, reinforcing bullish sentiment in global tech markets. Screen Holdings, a producer of semiconductor manufacturing equipment, climbed 3.74%, while Tokyo Electron added nearly 2%, further fueling the Nikkei’s momentum. ‎Investors remain optimistic that ongoing policy shifts and global tech demand will continue to drive Japanese equities in the near term.