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▼ Nikkei Logs Highest Year-End Close On Record Above 50,000
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The Nikkei stock index climbed 26 percent in 2025 from a year earlier to close at a record year-end high above 50,000 on Tuesday, helped by an artificial intelligence boom and expectations for economic measures under Prime Minister Sanae Takaichi.
Tokyo stocks, meanwhile, fell on the final trading day of 2025, with the 225-issue Nikkei Stock Average ending down 187.44 points, or 0.37 percent, from Monday at 50,339.48. The broader Topix index finished 17.55 points, or 0.51 percent, lower at 3,408.97.
Japanese financial markets will be closed from Wednesday through Friday for the New Year holidays.
Following a turbulent year of sharp swings, the Nikkei benchmark posted a record annual gain of more than 10,000 points, renewing an all-time high for the second year in a row.
The index began 2025 around 40,000 but faced headwinds after U.S. President Donald Trump rolled out an aggressive trade policy by imposing hefty tariffs, with the Nikkei suffering its third-largest point drop on record of 2,644 points on April 7 amid global sell-offs.
Stocks recovered after a Japan-U.S. trade deal in July that reduced auto and other tariff rates, and on easing trade frictions between the United States and China.
The market was further bolstered by solid earnings from Japanese companies and optimism that strong AI demand would spur buying of semiconductor and other related issues, sending the Nikkei above 45,000 in September.
"It's no exaggeration to say that the Nikkei's rise was led by chip shares throughout the year," said Wataru Akiyama, strategist in the Investment Content Department of Nomura Securities Co. "It was surprising to see tech companies keep expanding capital investment in AI."
The key index hit an all-time closing high of 52,411.34 in October after Takaichi took office earlier in the month, vowing to achieve a strong economy through stimulus measures under a slogan of "responsible and proactive public finances."
"The launch of the Takaichi government with its policy stance of expanding the economy through proactive fiscal measures also likely provided support to the market," Akiyama said, noting that the broader Topix index also renewed a record high recently.
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.
Tokyo stocks, meanwhile, fell on the final trading day of 2025, with the 225-issue Nikkei Stock Average ending down 187.44 points, or 0.37 percent, from Monday at 50,339.48. The broader Topix index finished 17.55 points, or 0.51 percent, lower at 3,408.97.
Japanese financial markets will be closed from Wednesday through Friday for the New Year holidays.
Following a turbulent year of sharp swings, the Nikkei benchmark posted a record annual gain of more than 10,000 points, renewing an all-time high for the second year in a row.
The index began 2025 around 40,000 but faced headwinds after U.S. President Donald Trump rolled out an aggressive trade policy by imposing hefty tariffs, with the Nikkei suffering its third-largest point drop on record of 2,644 points on April 7 amid global sell-offs.
Stocks recovered after a Japan-U.S. trade deal in July that reduced auto and other tariff rates, and on easing trade frictions between the United States and China.
The market was further bolstered by solid earnings from Japanese companies and optimism that strong AI demand would spur buying of semiconductor and other related issues, sending the Nikkei above 45,000 in September.
"It's no exaggeration to say that the Nikkei's rise was led by chip shares throughout the year," said Wataru Akiyama, strategist in the Investment Content Department of Nomura Securities Co. "It was surprising to see tech companies keep expanding capital investment in AI."
The key index hit an all-time closing high of 52,411.34 in October after Takaichi took office earlier in the month, vowing to achieve a strong economy through stimulus measures under a slogan of "responsible and proactive public finances."
"The launch of the Takaichi government with its policy stance of expanding the economy through proactive fiscal measures also likely provided support to the market," Akiyama said, noting that the broader Topix index also renewed a record high recently.
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.
- 31/12 19:51
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