Japan's Nikkei 225 set to hit another high as Asia markets look past geopolitical worries
Published Tue, Jan 13 2026
6:54 PM EST
Updated 5 Min Ago
Lim Hui Jie@in/hui-jie-lim-a7371176/WATCH LIVEKey Points
- The "Takaichi trade" remains alive and well as investors piled into Japanese markets on the back of a weakening yen.
- This comes as Japan's ruling LDP under new Prime Minister Sanae Takaichi is expected to call an election likely in February.
- The yen has hit its weakest level against the greenback since July 2024, crossing the 159 mark.
Osanbashi in Yokohama on December 10, 2022.
Yuichi Yamazaki | Afp | Getty Images
Japan's Nikkei 225 index was set to hit another record Wednesday, amid broader gains expected in Asia markets as the region looked past geopolitical concerns.
The Japanese index gained over 3% to hit a record high Tuesday on expectations that Prime Minister Sanae Takaichi could call for a snap election likely in February. This election, if called, will be Takaichi's first time facing Japan's voters in an election.
Futures for the Nikkei 225 pointed to a stronger open, with the futures contract in Chicago at 54,045, and its counterpart in Osaka at 53,960, compared to the previous close of 53,549.16.
The Japanese yen has also weakened past the 159 mark against the dollar, reaching its lowest level since July 2024, when Japanese authorities intervened to stop the yen's slide.
Australia's S&P/ASX 200 rising 0.11%.
Hong Kong's Hang Seng index futures were at 26,920, pointing to a stronger open compared to the HSI's last close of 26,848.47.
Overnight in the U.S., all three major indexes fell as investors grappled with volatility from a flurry of proposals from U.S. President Donald Trump floated in the past few days.
The S&P 500 dipped 0.19% as investors sold JPMorgan despite better-than-expected numbers, while the Dow Jones Industrial Average shed 0.8%. The Nasdaq Composite fell 0.1%.
âCNBC's Sean Conlon and Pia Singh contributed to this report.