On January 14, 2026, Japan's Nikkei stock average surged to a record high of 54,364.54. Speculation over a snap election by Prime Minister Sanae Takaichi fueled hopes for expanded fiscal stimulus, while a weakening yen boosted exporters. Meanwhile, bond yields rose amid fiscal concerns.
Tokyo's stock market saw the Nikkei 225 climb 1.5% to 54,364.54 on January 14, 2026, crossing the 54,000 mark for the first time. The broader Topix index also reached an all-time high, rising 0.88% to 3,630.53. The previous day, January 13, the Nikkei had jumped 3% to close at 53,549.16, surpassing 53,000 for the first time.
The rally stems from reports that Prime Minister Sanae Takaichi may dissolve parliament this month and call a general election in February. Markets are betting on expanded fiscal stimulus under her leadership, lifting stocks. A sharp yen decline since last week has further supported equities by enhancing overseas earnings for Japan's major exporters.
"The expectation for an early election continued to lift local stocks, while the weaker yen also boosted appetite for equities," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. "But investors sold some stocks to book profits after the sharp gains in the previous session."
The yen tumbled against the U.S. dollar to 159.35, its weakest since July 2024, nearing levels that could prompt government intervention. Japanese government bonds faced a second day of selling, with the 10-year yield rising 2 basis points to 2.180%, the highest since February 1999. Bond prices move inversely to yields, reflecting worries over debt-funded spending.
Notable performers included chip-testing equipment maker Advantest, up 5.16%, and chip-making equipment firm Tokyo Electron, which climbed 2.36%. Uniqlo owner Fast Retailing gained 4%. Toyota Motor edged 0.3% lower after a 7.5% jump the prior day, while SoftBank Group fell 4.74%, weighing on the Nikkei.
While Takaichi's dovish fiscal stance drives the stock surge, the weakening currency and bond rout raise broader economic concerns. Investors are watching closely for election developments.
