Japanese equities showed mixed performances on Thursday, with the Nikkei 225 edging down slightly, while the broader Topix Index gained. The benchmark indexes remained near record highs, supported by expectations of fiscal stimulus and portfolio reallocation flows.
- The Nikkei 225 shed 0.02% to close at 57,640.
- Sentiment remains underpinned by expectations that Prime Minister Sanae Takaichi’s expansionary fiscal agenda will provide additional support to domestic growth.
- Japanese stocks have also benefited from portfolio reallocation flows, as some foreign investors rotate out of US equities into markets offering comparatively more attractive valuations and solid growth prospects.
- Advantest (-3.1%), Disco Corp (-3.4%) and Mitsubishi Heavy Industries (-2.2%) experienced sharp losses.
The Nikkei experienced a minor setback, however overall market sentiment remains positive. Economic policies and shifting investment strategies from international investors are contributing to the index’s stability near record highs, though some individual companies experienced losses. This mixed performance suggests a market that is both robust and subject to sector-specific vulnerabilities.