JAPAN TODAY



 

The Nikkei stock index ended at a record high above 58,000 on Wednesday, as speculation about further interest rate hikes by the Bank of Japan receded after the government's nomination of two new BOJ policymakers.

The U.S. dollar briefly rose above the 156 yen line in Tokyo after the government submitted to parliament its nominations of university professors Toichiro Asada and Ayano Sato as new members of the central bank's policy board.

The market sees the two as proponents of a reflationary policy that pursues monetary easing. The U.S. currency later retreated to the mid-155 yen range due to wariness about yen-buying intervention, dealers said.

The 225-issue Nikkei Stock Average climbed 1,262.03 points, or 2.20 percent, from Tuesday to 58,583.12. The broader Topix index finished 27.18 points, or 0.71 percent, higher at 3,843.16.

On the top-tier Prime Market, the main gainers were nonferrous metal, electric appliance and real estate issues.

Stocks rose from the outset, buoyed by heavyweight technology shares after software-related issues climbed in the U.S. market, with the Nikkei renewing an intraday record for the first time in two weeks.

The market climbed further in the afternoon, as investors welcomed the nomination of the two BOJ policymakers, brokers said.

"The proposal fueled hopes that it would make it easier for the government of Prime Minister (Sanae) Takaichi to promote its economic policies," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.

Meanwhile, Mitsubishi Heavy Industries fell 1.2 percent to 4,752 yen after the company's subsidiaries were listed as among 20 defense-related entities subject to China's export ban for dual-use items amid a diplomatic row.