Japan’s Nikkei tops 50,000 for the first time as stimulus optimism drives rally
Japan’s benchmark Nikkei 225 surged past the 50,000 mark for the first time on Monday, hitting a fresh record high amid investor optimism over a major economic stimulus expected from new Prime Minister Sanae Takaichi.
The Nikkei climbed as much as 2.4% to 50,491.23 before ending the morning session up 2.1% at 50,337.36, extending its year-to-date gain to 26%. The broader Topix index also reached an all-time high, rising 1.6% to 3,321.48, News.az reports, citing Reuters.
“The Nikkei’s gains were supported by expectations for the Takaichi administration, whose policy is focused on growth,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
Tech and retail shares led Monday’s rally, with Advantest jumping 5.15% and Fast Retailing, owner of Uniqlo, rising 2.73%.
The market’s rapid climb marks a stunning turnaround after decades of stagnation. The Nikkei finally recovered its 1989 bubble-era peak in early 2024 and has since continued breaking records, buoyed by expectations of proactive fiscal spending.
Takaichi’s government is preparing an economic stimulus package worth over 13.9 trillion yen ($92 billion), focused on strategic investment and growth sectors. Analysts say investors are betting on her continuation of Abenomics-style stimulus policies.
Takaichi is set to meet U.S. President Donald Trump later on Monday, followed by a bilateral summit on Tuesday — a key test of her government’s early diplomacy and economic agenda.
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