Japan's Nikkei, Topix hit record highs on earnings, 'Takaichi trade' optimism

By Satoshi Sugiyama

TOKYO, Feb 10 (Reuters) - Japan's Nikkei share average surged to a record high in early Tuesday trade, following robust quarterly earnings and momentum from Prime Minister Sanae Takaichi's landslide victory in Sunday's general election.

The Nikkei 225 Index .N225 jumped 2.5% to 57,760.09 by 0120 GMT on Tuesday. The broader Topix .TOPX, which also hit a record intra-day high, advanced 1.9% to 3,854.16. The Nikkei is up 12% so far this year.

Earnings season is underway in the world's fourth-largest economy, and markets are buoyed by expectations that Takaichi's overwhelming victory would enable her to push through big spending and tax relief.

"Following the ruling coalition's landslide victory in the general election, expectations for proactive fiscal policy are rising, and hopes for an economic boost are spreading in the domestic stock market," said Takayuki Miyajima, a senior economist at Sony Financial Group.

Cable maker Furukawa Electric 5801.T was on the cusp of reaching a daily upper limit after reporting solid earnings on the previous day, soaring over 21% and becoming the Nikkei's best percentage gainer. IT services firm NEC 6701.T shares were up 7.2% following a share buyback announcement on Monday.

Meanwhile, SoftBank Group 9984.T, seen as the bellwether for artificial intelligence investment sentiment in Japan, provided the biggest uplift to the Nikkei with a 10% gain after a rally in high-tech stocks in the U.S. and ahead of the company's earnings on Thursday.

There were 188 advancers on the Nikkei index against 36 decliners.