Wednesday, Jan 14, 2026 | 24 Rajab 1447
Wednesday, Jan 14, 2026 | 24 Rajab 1447
TOKYO: Japanese stocks climbed to a record high on Wednesday, while the nation’s bonds and currency extended their declines as markets priced in the possibility of a snap election that could pave way for expanded fiscal stimulus.
A sharp yen decline since last week also provided a tailwind for equities, as the softer currency increases overseas earnings for Japan’s heavyweight exporters.
The Nikkei was up 1.5% at 54,364.54, as of 0206 GMT, crossing the key 54,000 mark for the first time.
The broader Topix also hit an all-time high on Wednesday, rising 0.88% to 3,630.53.
The Nikkei jumped 3% to hit a record high on Tuesday following a media report that Prime Minister Sanae Takaichi might dissolve the parliament this month and call for a general election in February.
“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 US dollar on Tuesday to hit its weakest level since July 2024.
The currency was last flat down 0.13% at 159.35 to the greenback, hovering near a level where the market expects a government intervention.
Heavy JGBs selloff extended into a second day, sending the yield on five-year bonds to a record high, ahead of an auction later in the day and growing concerns over debt-funded spending.
The 10-year JGB yield rose 2 bps to 2.180%, the highest since February 1999.
Bond prices move inversely to yields. Shares of chip-testing equipment maker Advantest rose 5.16%, while chip-making equipment maker Tokyo Electron climbed 2.36%.
Uniqlo brand owner Fast Retailing gained 4%.
Toyota Motor edged 0.3% lower after jumping 7.5% in the previous session.
Shares of SoftBank Group lost 4.74% to weigh the most in the Nikkei.
