"In my view, the easing of tensions between the United States and China has been the primary catalyst behind this surge, since markets have long considered the trade relationship between the world's two largest economies a direct threat to global trade flows and supply chains, especially when tariff rhetoric dominated the scene. The recent agreement between U.S. and Chinese negotiators on key issues gives markets a long-awaited breather and paves the way for a meeting between Trump and Xi that could cement these understandings."
"Expectations today are driven by the massive fiscal spending pledged by the new Prime Minister, Sanae Takaichi. A government committed to direct economic stimulus signals a strong push for Japanese companies, making investors more willing to finance expansions and increase equity exposure. I believe this policy could restore vitality to Japan's economy, which has long struggled with sluggish inflation and weak domestic demand."
Nikkei 225 surpassed 50,000 for the first time amid converging political and economic forces that raised investor appetite for Asian assets. Easing tensions between the United States and China and a recent agreement between negotiators reduced fears for global trade flows and opened prospects for a Trump–Xi meeting and a lasting trade deal. Domestic Japanese dynamics also played a central role, with massive fiscal spending pledged by Prime Minister Sanae Takaichi and a government focus on direct economic stimulus encouraging corporate expansion and increased equity financing. A weakening U.S. dollar and expectations of Federal Reserve rate cuts further supported Asian, export-driven equities.
Read at London Business News | Londonlovesbusiness.com
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