Japanese stock indexes recorded new highs on Wednesday. This development occurred amidst expectations that Prime Minister Sanae Takaichi may call for a snap election, potentially in February.
Should an election be initiated, it would mark Prime Minister Takaichi's first time facing Japan's electorate.
The Nikkei 225 index increased by as much as 1%, surpassing the 54,000 threshold for the first time. This followed a gain of over 3% on Tuesday, which also established a record high. The Topix index continued its upward trend, gaining 0.6% and reaching new highs.
Simultaneously, the Japanese yen weakened beyond the 159 mark against the dollar, reaching its lowest level since July 2024. Japanese authorities had intervened in July 2024 to address the yen's decline.