Nikkei Surges 3% as 'Takaichi Trade' Ignites Japan Stocks 2026
Japan's Nikkei index surged 3% on Jan 13, 2026, as the 'Takaichi trade' gains momentum. Discover how the potential snap election is shaping the outlook for Japan stocks 2026.
Japanese equities kicked off the week with a massive rally. On Tuesday morning, January 13, 2026, the Nikkei Stock Average jumped over 3% following a three-day holiday weekend. Investors are aggressively betting on the so-called Takaichi trade, anticipating a major political shift that could further fuel the nation's expansionary fiscal path.
Analyzing the Takaichi Trade for Japan Stocks 2026
According to Nikkei reports, the surge is driven by speculation that Prime Minister Takaichi will call a snap election as early as February. This move is seen as an attempt to solidify her mandate for aggressive spending. Meanwhile, the yen has tumbled to a one-year low against the dollar, providing a significant tailwind for Japan's export-heavy industries.
Defense and Space Sectors Take the Lead
Defense and space-related stocks are spearheading the rally, reflecting the administration's focus on national security and technological sovereignty. Institutional interest is also bolstered by improved corporate governance; Japanese companies' dividends are nearing 40% of their profits, marking a significant milestone in shareholder returns for 2026.
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