Nikkei 225 Surpasses 53,000 as Yen Depreciation Accelerates Under Takaichi

While shaking hands, they're holding their fists. Japan's stock market celebrated as the Nikkei 225 topped 53,000 for the first time, but a plunging yen and soaring bond yields are casting a long shadow over the nation's fiscal health.

Nikkei 225 Surpasses 53,000 for the First Time

On January 13, 2026, the Nikkei Stock Average surged 1,609.27 points (3.10%) to close at 53,549.16. The broader Topix index also finished 2.41% higher at 3,598.89. According to Kyodo, the rally was fueled by speculation that Prime Minister Sanae Takaichi might dissolve the House of Representatives as early as next week for a snap election, raising hopes for continued political stability.

Fiscal Health Concerns Amid Rising Bond Yields

The enthusiasm in stocks wasn't mirrored in the currency and bond markets. The Japanese Yen slid to the 158.75 range against the U.S. dollar, its lowest point since July 2024. Simultaneously, the yield on the benchmark 10-year Japanese Government Bond (JGB) briefly climbed to 2.160%, hitting its highest level since February 1999.

Finance Minister Satsuki Katayama noted she'd shared concerns regarding the currency's depreciation with U.S. Treasury Secretary Scott Bessent. However, markets remain focused on Takaichi's expansionary stance. Analysts suggest that while exporters benefit from a weak yen, the banking sector is attracting buyers who expect improved profits from rising interest rates.