18.02.202607:07:43UTC+00Japanese Shares Advance on Strong Data

The Nikkei 225 Index rose 1.02% to close at 57,144, while the broader Topix Index gained 1.21% to finish at 3,807 on Wednesday, recouping losses from earlier in the week. The rebound followed stronger-than-expected export data from Japan, which improved the broader economic outlook.

Political developments also supported sentiment. Prime Minister Sanae Takaichi was formally reelected after a decisive electoral victory, shifting market focus toward expediting budget deliberations and implementing the trade agreement reached with US President Donald Trump. Takaichi confirmed the first tranche of projects under Japan’s $550 billion investment pledge linked to the bilateral trade deal initially announced by Trump.

Separately, the IMF urged Japan to press ahead with the normalization of monetary policy and to avoid fiscal loosening, warning that a reduction in the consumption tax would “erode fiscal space and add to fiscal risks.”

Financial stocks led the market higher, with Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group advancing between 0.5% and 2.8%.