TOKYO: Japan's Nikkei share average rose to a record high on Wednesday, buoyed by hopes for more fiscal stimulus following a report last week that the government might call a snap election next month.
A sharp decline in the yen since the end of last week also provided a tailwind to the market as a softer currency increases the value of overseas earnings at Japan's heavyweight exporters.
The Nikkei was up 1.3% at 54,219.24, as of 0049 GMT, crossing the 54,000 mark for the first time.
It jumped 3% to hit a record high on Tuesday following a report that Prime Minister Sanae Takaichi might dissolve parliament this month and call a general election in February.
The broader Topix also hit an all-time high on Wednesday, rising 0.6% to 3,620.22.
Chip-testing equipment maker Advantest rose 5%, while chip-making equipment maker Tokyo Electron climbed 1.93%. Uniqlo brand owner Fast Retailing gained 3%.
"The expectation for an early election continued to lift local stocks, while the weaker yen also boosted appetite for equities," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
"But investors sold some stocks to book profits after the sharp gains in the previous session."
The yen tumbled against the U.S. dollar on Tuesday to hit its weakest level since July 2024. It was last flat at 159.2 to the dollar.
Toyota Motor fell 1.35% after jumping 7.5% on Tuesday.
SoftBank Group lost 3% to weigh the most on the Nikkei. - Reuters
