Japan’s Nikkei Surges Past 50,000 Mark for First Time Amid Optimism Over New Leadership

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: REUTERS/Manami Yamada

Japan’s Nikkei share average closed above the 50,000 mark for the first time on Monday, extending a series of record highs fueled by optimism over new Prime Minister Sanae Takaichi’s anticipated economic stimulus. The milestone reflects growing investor confidence in Japan’s economic outlook under the country’s first female leader.

The Nikkei 225 Index jumped 2.46% to finish at 50,512.32, marking a 26.6% gain so far this year. The broader Topix index also hit a record, climbing 1.7% to 3,325.05, up 19.4% in 2025. The rally gained further momentum after Takaichi’s election last week, with the index rising 2.5% since she assumed office.

“The leadership change has given a lot more confidence, you can see more stability, and the markets have rocketed from that,” said John Pearce, chief investment officer at UniSuper.

Tech-heavy stocks led the gains, supported by rising global demand for artificial intelligence and semiconductors. SoftBank Group surged 6.66%, providing the biggest lift to the Nikkei, while chip-testing firm Advantest advanced 6.53%. Fujikura, a maker of optical fiber for data centers, climbed nearly 8%.

According to Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management, “Investors who missed earlier rallies are now buying on dips, keeping the market’s momentum strong.”

The Nikkei’s rapid rise marks a stunning turnaround for Japan’s stock market, which took more than three decades to regain its late-1980s bubble-era peak. The index crossed 45,000 in mid-September and continued to surge as expectations grew for fiscal expansion.

Prime Minister Takaichi has pledged a proactive spending plan exceeding 13.9 trillion yen ($92.2 billion) to stimulate growth. She is set to meet U.S. President Donald Trump on Tuesday, following their initial call over the weekend, as Tokyo strengthens ties with Washington while pursuing economic recovery.