AsianFin — Japan’s Nikkei 225 index briefly crossed the 44,000 level on Tuesday for the first time in history, buoyed by optimism over trade developments and potential increases in government stimulus spending.

The benchmark Nikkei surged as much as 1.24% to 44,185.73 in early trading, hitting a record high before easing slightly as investors booked profits. By the midday trading break, the index was up 0.2% at 43,732.80, reflecting a slight cooling after the steep early gains.

Market participants attributed the rally to renewed confidence in Japan’s economic outlook, supported by ongoing trade negotiations and the expectation that policymakers may implement additional fiscal measures to stimulate growth. Analysts noted that while enthusiasm remains high, the rapid pace of gains encouraged some short-term profit-taking among traders.

Investors are also closely watching global cues, particularly developments in U.S.-Japan trade agreements and movements in international markets, which continue to influence sentiment in Tokyo.

The broader Topix index, which tracks all domestic first-section stocks, mirrored the Nikkei’s strength, supported by technology and export-oriented shares, further signaling a positive mood among investors.