Japan's Nikkei 225 surged to a historic milestone of 59,000 on Thursday, and it was above the 58,800 mark on Friday, propelled by aggressive sentiment following Prime Minister Sanae Takaichi‘s election, even as U.S. futures signaled a sharp retreat for Wall Street ahead of critical inflation data.

Record Highs In Tokyo

The Nikkei 225 hit an all-time high of 59,000 during a third straight session of record-breaking gains on Thursday.

This rally is being driven by the “Takaichi trade”, as investors bet that Prime Minister's growth-oriented policies—viewed as an extension of Abenomics—will lift stocks while pressuring the yen through "looser monetary policy and increased fiscal spending."

Sentiment was further bolstered by the government tapping Ayano Sato and Toichiro Asada for the central bank board, reported CNBC. Both are viewed as dovish, aligning perfectly with Takaichi's approach.

Wall Street Braces For ...