Key Facts
• On September 9, the Nikkei 225 index surpassed 44,000 yen for the first time.
• The index closed at 43,459.29 yen, down 184.52 yen from the previous day.
• Prime Minister Shigeru Ishiba’s resignation announcement boosted fiscal expansion expectations.
• Former minister Sanae Takaichi’s candidacy revived the ‘Takaichi Trade’ phenomenon.
• The ‘Takaichi Trade’ previously caused stock surges, yen depreciation, and lower interest rates.
• Current trends differ, with yen appreciation due to U.S. rate cut expectations.
• Gold prices hit a record 19,087 yen per gram, driven by U.S. rate cut speculation.
• Long-term interest rates continue to rise amid fiscal deterioration concerns.
• Analysts question the sustainability of the ‘Takaichi Trade’ amid 3%+ inflation.
• Sony Financial’s Hiroshi Watanabe noted overheating policies are unlikely under high inflation.
Summary
The Nikkei 225 index reached an intraday record of 44,000 yen on September 9, driven by fiscal expansion expectations following Prime Minister Shigeru Ishiba’s resignation. Former minister Sanae Takaichi’s candidacy revived the ‘Takaichi Trade,’ echoing her previous impact on markets during a leadership race. However, unlike past trends, the yen appreciated due to U.S. rate cut expectations. Gold prices also hit a record high, reflecting similar dynamics. Despite these gains, the index closed lower at 43,459.29 yen, as profit-taking weighed on the market. Analysts remain skeptical about the sustainability of the ‘Takaichi Trade,’ citing inflation concerns and limited room for overheating policies.
