Japanese Shares Rally on Strong US Jobs; Market Navigates First Week of Takaichi's Landslide Election Victory

MT Newswires Live02-12 09:21

Japanese equities resumed their upward trajectory on Thursday following a market holiday, buoyed by robust US jobs figures.

The Nikkei 225 rose 214.2 points or 0.4% to open at 57,864.74.

Domestically, Japan's producer price index (PPI) rose by 2.3% in January compared to the same period last year, the Bank of Japan (BoJ) said in Thursday's preliminary report.

The report also showed a 4.7% rise in Japan's export price index on a contractual currency basis over the year. Import prices recorded a year-on-year decrease of 0.2% while rising by 1.2% month-on-month.

At home, markets are navigating their first full week following Prime Minister Sanae Takaichi's landslide election victory.

During her initial post-win press briefing on Sunday, Takaichi addressed concerns about her proposed two-year suspension of the sales tax on food, to be pursued alongside increased defense and strategic industry spending.

In the US, American payrolls in January recorded the largest monthly gain in over a year, accompanied by an unexpected dip in the unemployment rate, further signaling a stabilizing labor market.

Investors now turn their attention to Friday's US inflation report, which could strengthen the argument for prolonged higher interest rates should price pressures persist.

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