Nikkei 225 index approaches record 50,000 point mark

VTV.vn - Asian stocks rose across the board on October 21, thanks to expectations that US-China trade tensions would cool down and that Sanae Takaichi would soon become Prime Minister, bringing the Nikkei 225 close to the 50,000 point mark.

A trader at a securities company in Tokyo, Japan. Photo: Kyodo/VNA

Asian stocks rose across the board in morning trading on October 21, as the prospect of easing trade tensions between the world’s two leading economies improved investor sentiment. Meanwhile, the near certainty that Sanae Takaichi will become Japan’s next Prime Minister sent the Nikkei 225 index to a record high.

US-China trade tensions have weighed on markets in recent weeks. Investors are now focused on a planned meeting between the two countries' leaders on the sidelines of the Asia- Pacific Economic Cooperation (APEC) summit in South Korea next week. US President Donald Trump said he expected to reach a fair trade deal with Chinese President Xi Jinping.

Hopes of an imminent resolution helped lift investor sentiment, with the MSCI Asia Pacific ex-Japan index hitting its highest in more than four and a half years at one point.

In China, the Shanghai Composite Index in Shanghai rose 0.8% to 3,896.10 points, while the Hang Seng Index in Hong Kong added 1.7% to 26,292.70 points.

Australian stocks also surged as investors rushed to buy shares of rare earth and strategic mineral miners, after the country signed a supply deal with the United States.

Japan's Nikkei 225 index rose 1.5% to 49,929.81 at the break, closing in on a historic 50,000-point gain ahead of a parliamentary vote later in the day that is expected to confirm Takaichi, a supporter of fiscal easing, as Japan's next prime minister.

Investors this week appeared to have shrugged off concerns about a prolonged U.S. government shutdown and bad loans at regional U.S. banks that weighed on markets last week. Instead, they were buying the dips and focusing on upcoming corporate earnings reports and hopes that trade tensions will ease.

Additionally, market expectations that the Federal Reserve will cut interest rates at its next two meetings, along with comments from White House economic adviser Kevin Hassett that the government shutdown is likely to end this week, have also helped to strengthen market sentiment.

Source: https://vtv.vn/chi-so-nikkei-225-tiem-can-moc-ky-luc-50000-diem-100251021140845094.htm