【Fujitomi】Nikkei Stock Average recovers to 19,000, easing geopolitical risk concerns and buoyed by policy expectations for the U.S. administration

The Nikkei stock average extended its gains, ending at 19,079.33 yen, up 203.45 yen (1.08%) from the previous day. Buying was led by expectations for gains in U.S. equities and a pause in the dollar’s rise, while expectations for the U.S. tax reform plan to be announced on the 26th supported financial stocks. Additionally, it is said that President Trump aims to cut personal income taxes and corporate tax rates to 15%.

While North Korea celebrated the 85th anniversary of the founding of the Korean People’s Army, reports said it conducted live-fire drills with the largest artillery unit to date. However, North Korea did not carry out provocative acts such as a nuclear test or missile launch, which had been anticipated, and geopolitical risk sentiment eased. According to a U.S. Senate official, on the 26th, Secretary of State Tillerson, Defense Secretary Mattis, Director of National Intelligence Coats, and U.S. military Chairman of the Joint Chiefs of Staff Dunford plan to brief all senators (over 100) at the White House on North Korea (Reuters). Amid this, North Korea condemned President Trump’s plan to brief senators and stated that the Administration’s maximum pressure and engagement policy is reckless.

TOPIX also rose, closing up 16.02 points (1.07%) at 1,519.21. The trading value on the Tokyo Stock Exchange First Section was 2,301.8 billion yen, and the trading volume was 1,948.68 million shares. The number of advancing issues on the First Section was 1,633, declining 305, and 78 were unchanged.

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