The Nikkei 225 Index slipped 0.02% to close at 49,308 on Wednesday after falling as much as 1.42% earlier in the session, while the broader Topix Index gained 0.52% to 3,266 amid reports that the new prime minister is preparing a large-scale stimulus plan that could surpass last year’s 13.9 trillion yen package. Sanae Takaichi, confirmed as prime minister on Tuesday, is expected to pursue expansionary fiscal measures and back accommodative monetary policy. Earlier weakness in Japanese equities reflected profit-taking after a strong rally to record highs. Among individual movers, SoftBank Group (-4.9%), Advantest (-1.7%), and JX Advanced (-4.3%) declined, while Fujikura (1.6%), Mitsubishi Heavy Industries (1.9%), and IHI Corp (6.4%) posted solid gains.
