Nikkei 225 Index 2026 Opens with Massive 3% Rally to Hit Two-Month High
The Nikkei 225 index 2026 started with a massive 3% rally, reaching 51,832.80 points. Tech stocks and a weak yen drove the surge amid Sanae Takaichi's fiscal policy optimism.
Nearly 3% up in a single day. Japan's stock market kicked off 2026 with a powerful statement, signaling a bullish year for Asian tech. The Nikkei 225 average surged 1,493.32 points to end at 51,832.80 on Monday, driven by heavy-hitting tech stocks and a weaker yen.
Nikkei 225 Index 2026 Surge Driven by Tech Giants and Weak Yen
According to Kyodo News, the broader Topix index also hit a record high close of 3,477.52. Investors' appetites were whetted by the strong performance of U.S. technology stocks late last week while Japanese markets were closed for the New Year. Chip-makers and AI-related firms led the pack, tracking their counterparts in New York.
A key factor in this rally is the market's optimism regarding Prime Minister Sanae Takaichi's expansive fiscal policies. Analysts suggest that the anticipation of heavy government spending on semiconductors and green energy is creating a solid floor for equity valuations in Tokyo.
Venezuela Tensions and Sky-High Bond Yields
Despite a dramatic weekend that saw the U.S. military strike in Venezuela, the impact on Tokyo was surprisingly limited. "The market views it as a short-term risk," noted Maki Sawada of Nomura Securities. Instead, the spotlight shifted to the 10-year JGB yield, which touched 2.125%—its highest point since February 1999.
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