Nikkei hits record year-end close above 50,000
Japan’s Nikkei stock index rose 26 percent in 2025 from the previous year to finish at a record year-end level above 50,000 on Tuesday, supported by a boom in artificial intelligence-related shares and expectations for economic policies under Prime Minister Sanae Takaichi.
Tokyo stocks, however, declined on the final trading day of the year, News.Az reports, citing Japanese media.
The 225-issue Nikkei Stock Average closed down 187.44 points, or 0.37 percent, from Monday at 50,339.48. The broader Topix index also fell, ending 17.55 points, or 0.51 percent, lower at 3,408.97.
Japanese financial markets will remain closed from Wednesday through Friday for the New Year holidays.
Despite a volatile year marked by sharp fluctuations, the Nikkei posted a record annual gain of more than 10,000 points, renewing an all-time high for the second consecutive year.
The index started 2025 around the 40,000 mark but came under pressure after U.S. President Donald Trump introduced an aggressive trade policy that included steep tariffs. As a result, the Nikkei suffered its third-largest single-day point drop on record, plunging 2,644 points on April 7 amid global market sell-offs.
Stocks rebounded following a Japan–U.S. trade agreement reached in July that lowered tariffs on automobiles and other goods, as well as easing trade tensions between the United States and China.
The market was further supported by strong earnings from Japanese companies and optimism that robust demand for artificial intelligence would boost purchases of semiconductor and related stocks, pushing the Nikkei above 45,000 in September.
On Tuesday, the Nikkei came under pressure as SoftBank Group fell on concern over its financial health after it announced plans to acquire U.S. data center investment firm DigitalBridge Group Inc. for roughly $4 billion.
On the top-tier Prime Market, the main decliners were securities house, nonferrous metal and service issues.
The U.S. dollar moved narrowly, mostly in the lower 156 yen range in Tokyo amid a lack of fresh trading cues and thin participation ahead of the New Year holidays, dealers said.
At 5 p.m., the dollar fetched 155.97-99 yen compared with 156.01-11 yen in New York and 156.07-09 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1770-1771 and 183.58-62 yen against $1.1767-1777 and 183.67-77 yen in New York and $1.1776-1777 and 183.80-84 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond ended up 0.015 percentage point from Monday's close at 2.070 percent as the debt was sold on speculation about additional interest rate hikes by the Bank of Japan.
The barometer of long-term interest rates surpassed 2.0 percent after the central bank raised its policy rate to a 30-year high of around 0.75 percent on Dec. 19.
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