Nikkei Hits Two-Week High, Set for Second Consecutive Weekly Gain

Tokyo | EcoPulse24

The Nikkei 225 index posted strong gains on Friday morning, rising about 477 points (around 1%) to reach 50,892, marking its highest level in two weeks and heading for a second consecutive weekly gain after three days of subdued trading.

The rally was underpinned by broad sector strength, with the broader Topix index rising 0.4% for the second session in a row, reflecting improved risk appetite in the Japanese market.

Positive sentiment was boosted by a record Wall Street close earlier in the week, while most global markets were closed on Thursday for the Christmas holiday, helping to carry over momentum into Asian markets.

Locally, Japan's cabinet approved a record draft budget for the 2026 fiscal year, with general account spending set at approximately 122 trillion yen - the first under the Takaiichi administration. The budget is scheduled for parliamentary review in January.

Despite the upbeat tone, recent economic data tempered the rise. November industrial production fell more than expected, retail sales growth slowed despite beating forecasts, and the unemployment rate remained at its highest since July 2024.

Leading stocks included Fast Retailing (+2.2%), SoftBank Group (+2.1%), Advantest (+1.6%), and Mitsubishi Electric (+1.1%).