Nikkei Edges Higher on Optimism Over US Treasury Secretary Pick

Japanese shares edged higher on Monday as investors welcomed Scott Bessent's nomination as US Treasury Secretary, interpreting the move as a signal of stability for the world's largest economy and financial markets.

The Nikkei 225 rose 1.3%, or 496.50 points, to close at 38,780.35.

Bessent, head of macro hedge fund Key Square Group, has backed Donald Trump's tariff and tax plans but is expected to focus on economic stability. His selection has eased fears that protectionist policies could worsen inflation, trade tensions, and market turbulence.

In economic news, Japan's coincident index rose to 115.3 in September from 114.0 in August, while the leading index was revised to 109.1 from 109.4 but marked an improvement from 106.9, with consumer confidence at a five-month high.

As part of corporate developments, SOSiLA Logistics REIT 2979 plans to invest 1.5 billion yen in a silent partnership tied to the SOSiLA Kashiwa logistics property. The deal, set to close on Dec. 19, marks the REIT's first indirect investment in the SOSiLA series.

KLab 3656 is writing off 114 million yen as an extraordinary loss after abandoning claims tied to its 15th to 17th series of Trust Stock Options.

The decision follows a May 2023 ruling by the National Tax Agency, which deemed trust-type stock options taxable as compensation upon exercise, triggering retroactive tax liabilities.

Meanwhile, Giftee 4449 finalized its 4.45 billion yen acquisition of YouGotaGift.com (YGG), an e-gift platform based in the British Virgin Islands. YGG, led by CEO Husain Makiya and founded in 2013, is now a Giftee subsidiary.