Key Facts
• On September 16, Nikkei 225 surpassed 45,000 points for the first time.
• Closing value: 44,902.27 points, up 134.15 points from the previous week.
• TOPIX also hit a record high at 3,168.36 points, up 7.87 points.
• U.S. tech stock gains and semiconductor demand drove the rally.
• U.S. Federal Reserve expected to cut interest rates three times in 2025.
• AI growth expectations contributed to Japan’s stock market surge.
• Political uncertainty surrounds Japan’s upcoming Liberal Democratic Party leadership election.
• Market anticipates a pro-spending candidate as the next prime minister.
• Fiscal discipline-focused leadership could trigger a market downturn.
• Analyst warns “indecisive politics” may harm economic stability and stock performance.
Summary
The Nikkei 225 Index reached a historic milestone on September 16, briefly surpassing 45,000 points before closing at 44,902.27 points. This marked the fourth consecutive trading day of record highs, driven by U.S. tech stock gains, semiconductor demand, and expectations of Federal Reserve interest rate cuts. The TOPIX also achieved a record high of 3,168.36 points. However, Japan’s political landscape remains a critical factor. The upcoming Liberal Democratic Party leadership election has fueled market optimism for a pro-spending candidate, but concerns linger over potential fiscal discipline-focused leadership, which could reverse the market’s upward trend. Analysts caution that prolonged political instability could weigh on economic growth and stock performance.
