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Japan stocks extend Takaichi rally to fresh records

Japanese equities extended their record-breaking rally on Tuesday after Prime Minister Sanae Takaichi’s decisive election victory boosted expectations for pro‑growth fiscal policy and corporate‑friendly reforms. The positive tone in Tokyo and a rebound in regional technology stocks helped Asian markets trade mostly higher, with investors also eyeing key US jobs and inflation data later in the week. On Wall Street, major US indices closed Monday with modest gains as the Dow Jones held above the 50,000 mark, while in Europe, equities advanced in tandem with an improving euro‑area sentiment backdrop. Gold prices were consolidating, trading around USD 5040 per ounce on Tuesday, while US Treasury yields were slightly lower across the curve, with the 2-year and 10-year yields trading around 3.5% and 4.2%. The dollar stabilised following a sharp drop on Monday.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Japan Economy
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Asian equities extended gains on Tuesday, with Japan’s Nikkei 225 climbing as much as 3% to a record intraday high of above 58,000 points after rising nearly 4% on Monday. The rally followed Prime Minister Sanae Takaichi’s decisive election victory over the weekend, which investors see as supportive of economic growth, corporate earnings and domestic capital spending through expansionary fiscal policy and pro-business reforms. Technology stocks across the region also rebounded after last week’s global tech sell-off, with SoftBank Group shares surging more than 10% on Monday after its telecom subsidiary SoftBank Corp lifted its full-year revenue forecast. Korea’s Kospi was little changed, while Australia’s S&P/ASX 200 was trading 0.2% higher. Hong Kong’s Hang Seng Index was up 0.4% and mainland China’s CSI 300 was 0.1% higher, while India’s Nifty 50 was trading 0.4% in positive territory as investors in the region awaited key US jobs and inflation data later in the week.

US indices mixed as Dow holds 50,000

US equities ended Monday with modest gains, as the Dow Jones Industrial Average closed marginally higher at 50,135.87 points, remaining just above the 50,000 threshold after briefly rising to around 50,219 points earlier in the session. The broader S&P 500 advanced 0.5% to 6,964.82 points and the technology-heavy Nasdaq 100 climbed 0.8% to 25,268.14 points, extending its rebound that began on Friday after a period of rotation out of technology stocks amid concerns about heavy artificial intelligence investment. Market participants are now looking to the delayed January labour market report in the middle of the week and inflation data at the end of the week for guidance on the interest-rate outlook.

Swiss consumer sentiment edges higher

Swiss consumer confidence picked up slightly in January, with the sentiment index published by the State Secretariat for Economic Affairs (Seco) on Monday rising by 0.6 points from December to -30.1 points, but still standing 0.8 points below its level a year earlier. Sentiment had been at its weakest level in April at -42.4 points, shortly after US President Donald Trump announced initial tariff increases against Switzerland, before recovering until July and then dropping again to -39.9 points in August as Trump imposed a 39% tariff surcharge. Overall, the monthly Seco survey, which has tracked household sentiment since 1972, points to a modest recovery in Swiss consumer morale from recent lows but still subdued confidence compared with last year. Switzerland’s SMI edged up 0.1% on Monday.

Euro-area sentiment signals emerging upturn

European equities advanced on Monday, supported by record levels on Wall Street and strong gains in Japan. The Euro Stoxx 50 climbed 1% to 6,059.36 points, while Germany’s DAX gained 1.2% and France’s CAC 40 added 0.6%. The macroeconomic backdrop was constructive, with the sentix Economic Index for the euro area rising to 4.2 points in February from -1.8 in January, according to data released on Monday, marking a third consecutive increase and the highest level since last July. For Germany, the euro area's largest economy, overall sentiment strengthened to -6.9 from -16.4, with expectations jumping to 16.3 from 5.5 as strong industrial order intake prompted institutional investors to sharply upgrade their outlook.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from AstraZeneca, Coca-Cola, Ferrari, S&P Global, and Welltower.

Economic data in focus: US retail sales (14:30).

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Editor: Alessandro Fezzi
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