Japan Stock Market Takaichi Trade 2026: Nikkei Hits All-Time High as Yen Tumbles
Japanese stocks reached a record high on Jan 13, 2026, as investors bet on the 'Takaichi trade.' AI and defense stocks led the 3% Nikkei surge while the Yen fell near 159.
The Tokyo market just witnessed a historic explosion. On Tuesday, January 13, 2026, the Nikkei Stock Average surged more than 3% to set new intraday and closing records. Investors are aggressively piling into the so-called 'Takaichi trade,' betting on a snap election that could cement an era of massive fiscal expansion.
Japan Stock Market Takaichi Trade 2026 Speculation
According to Nikkei reports, the rally is fueled by whispers that Prime Minister Sanae Takaichi will call a snap election in February. Her 'expansionary' fiscal stance has electrified the market, as traders anticipate a surge in government spending and the maintenance of ultra-loose monetary conditions. The Yen consequently tumbled to a 1-year low, nearing the 159 mark against the dollar.
| Metric | Value | Notes |
|---|---|---|
| Nikkei 225 Growth | Over 3% | New All-time High |
| USD/JPY Rate | Near 159 | 1-year Low for Yen |
| Japan Inc. Dividends | 20tn+ Yen | Historic Payout Record |
Defense and AI Stocks Lead the Charge
The rally isn't just broad; it's specialized. Stocks in defense, space, and AI sectors are leading the Nikkei’s climb. Meanwhile, corporate Japan's fundamentals look stronger than ever, with dividends expected to top 20 trillion yen for the first time, approaching a 40% profit payout ratio.
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