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10.02.202607:01:37UTC+00Japanese Shares Extend Rally, SoftBank Surges

The Nikkei 225 Index jumped 2.28% to close at 57,650, while the broader Topix Index advanced 1.9% to 3,855 on Tuesday, with both benchmarks notching fresh record highs. Japanese equities were bolstered by expectations that Prime Minister Sanae Takaichi’s decisive election victory will give her the political capital to push through increased fiscal spending and tax cuts. Markets also appeared reassured after she pledged that the stimulus measures would not further strain Japan’s already stretched public finances.

Tech investing conglomerate SoftBank Group surged 10.7% on renewed optimism surrounding artificial intelligence and ahead of its earnings release on Thursday. The rally spilled over into other technology and AI-related names, including Fujikura (up 5%), Disco Corp (4.4%), Advantest (1.2%) and Tokyo Electron (2.2%).

Beyond the tech sector, cable manufacturer Furukawa Electric soared 22.9% on robust earnings, while IT services provider NEC climbed 7.3% after unveiling a share buyback program.

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