Nikkei 225 Surpasses 50,000 Amid US-China Trade Optimism

Japan's Nikkei 225 stock index surpassed the 50,000 mark for the first time, buoyed by a combination of factors including a weaker yen, optimistic market sentiment around U.S.-China trade progress, and expectations of U.S. Federal Reserve rate cuts. The leadership of new Japanese Prime Minister Sanae Takaichi, who advocates for increased government spending on manufacturing, food security, nuclear energy, AI, and other high-tech sectors, also contributed to positive investor sentiment. The U.S. and China reached a temporary trade framework agreement, with Presidents Donald Trump and Xi Jinping expected to meet soon to finalize it, which further boosted regional markets including South Korea's Kospi and Hong Kong's Hang Seng futures. Additionally, the U.S. reported a lower-than-expected Consumer Price Index in September, reinforcing hopes of interest rate reductions and supporting record highs in U.S. stock indices. The Trump administration's decision to delay additional tariffs on China in exchange for China postponing rare earth export restrictions helped improve market mood. Overall, these combined economic and geopolitical developments have driven the Nikkei's nearly 30% increase over the past year and led to broad buying across global markets.