Nikkei 225 gains 1.27% as Japan inches closer to new PM
Japan's Nikkei 225 shot up 1.27% on Thursday, hitting 48,277.74, as buzz grew around Sanae Takaichi possibly becoming the next prime minister.
The Topix index also edged higher.
This wave of optimism came after the Japan Innovation Party signaled support for Takaichi, sparking talk of more government spending ahead.
Takaichi's economic stimulus support fuels investor excitement
Takaichi is known for backing bold economic stimulus, which has investors excited about a potential boost for Japan's economy.
Tech giants like SoftBank Group and Tokyo Electron saw their shares jump, and Osaka-based property and rail stocks also climbed on hopes of Osaka becoming Japan's second capital.
Market rebounds after recent political turbulence
The market rebound follows recent political uncertainty after Komeito left the coalition.
The yen saw some swings during US-Japan finance talks, while Renesas Electronics surged on news of a possible $2 billion deal.
All this has added up to a much-needed dose of market confidence.