Tokyo, January 6, 2026, 18:53 JST — Market closed
Japan’s Nikkei 225 ended at a record closing high on Tuesday, riding gains in banks and refiners, while the broader Topix — a wider index of Tokyo Stock Exchange shares — also finished at a new peak.
The Nikkei rose 1.32% to 52,518.08 and the Topix added 1.75% to 3,538.44. Eneos Holdings jumped 5.39% and Mizuho Financial Group gained 5%, as investors stayed in “risk-on” mode to start the year. The Business Times
The record close matters because traders are increasingly treating Tokyo as a domestic story, not just a proxy for U.S. tech. “The fundamental setting for Japanese equities is strong,” said Kazunori Tatebe, chief strategist at Daiwa Asset Management, pointing to a shift “from deflation to inflation” and corporate governance reform. The Edge Malaysia
Global cues still did their part, with investors unwinding a brief dash into the dollar after weekend Venezuela headlines and pushing equities higher. The dollar was slightly softer against the yen at 156.37, and “early Monday’s flight into dollar safety proved very short-lived,” said Francesco Pesole, an FX analyst at ING. Reuters
Tech-linked stocks remained in demand alongside financials. Precision tools maker Disco Corp rose 6.1%, and investors were also watching U.S. services data due Wednesday and jobs reports later this week for fresh clues on Federal Reserve policy. AP News
The rally followed a strong first trading day on Monday, when the Nikkei jumped 2.96% to 51,832.80, led by large-cap semiconductor-related shares, Jiji Press reported. Nippon
Not every stock joined the party. Chubu Electric Power tumbled nearly 10% after the utility disclosed possible problems in how it evaluated seismic waves at its idled Hamaoka nuclear plant, and its president said there was suspicion the benchmark wave was “deliberately chosen to underestimate seismic motion.” Reuters
Domestic data were steadier than investors had feared. Japan’s manufacturing PMI — a survey-based gauge where 50 marks the line between growth and contraction — improved to 50.0 in December from 48.7, and “saw conditions stabilise at the end of the year,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence. Reuters
But the record run has tightened the room for error. If the yen strengthens sharply or global yields climb on hotter-than-expected data, exporters and high-multiple tech shares could see quick profit-taking; chart watchers are eyeing 53,000 as the next round-number test after the close above 52,500.
Japan’s rate outlook is also back in focus. Bank of Japan Governor Kazuo Ueda has said the central bank will keep raising rates if forecasts hold, arguing “wages and prices are highly likely to rise together moderately,” after the BOJ lifted its policy rate to 0.75% in December; the next key catalyst is the BOJ’s quarterly outlook report at its January 22-23 policy meeting. Reuters
AloJapan.com