Japan's stock markets soar on government optimism

Business Dec 26, 2025

Japan's Topix index just hit an all-time high, climbing 0.5% to 3,436.75 after the government approved a new budget aimed at balancing spending and debt.
The Nikkei index also jumped 0.9%, capping off a strong year with a 26% gain—pretty impressive for investors watching the markets.

What's driving the buzz?

Falling interest rates are giving stocks a boost, with experts like Nomura's Maki Sawada pointing out the positive impact of lower borrowing costs right now.
Big names like SoftBank Group, Fast Retailing, and Nintendo all saw solid gains, while some companies like Tokyo Electric Power slipped a bit.
As the year wraps up, everyone's watching to see if the Nikkei can break past that big 51,000 mark.