Nikkei, Topix Rally on Takaichi Stimulus Hopes

Japan's Nikkei 225 and Topix jumped to record intraday and closing highs as markets priced in Sanae Takaichi’s near‑certain premiership and reports she is preparing a sizeable fiscal stimulus that could exceed last year’s ¥13.9 trillion. The formalising coalition with the Japan Innovation Party should secure parliamentary backing, while benchmark JGB prices fell and yields rose amid renewed global reflation flows and technical momentum in Nikkei futures. Broader Asian markets also climbed — MSCI’s Asia ex‑Japan index hit multiyear highs — as hopes of easing U.S.–China trade tensions and a possible Trump‑Xi meeting boosted risk appetite. Domestic data showed exports rose 4.2% in September on stronger chip and electronic parts shipments, though shipments to the U.S. fell amid tariffs. U.S. equities gained, with the Dow reaching record highs after earnings beats from companies including GM, Coca‑Cola and 3M, but analysts warned the rally’s durability hinges on the final size and implementation of any stimulus, coalition cohesion, tariffs and key U.S. data.