Key Facts
• Nikkei 225 surpassed ¥50,000 for the first time in late October 2025.
• Previous record of ¥38,957 was set on December 29, 1989, during the bubble era.
• The index rose by over ¥11,000 in just 20 months since February 2024.
• Global monetary easing and post-COVID fiscal stimulus drove asset price increases.
• Generative AI adoption boosted economic growth expectations, lifting stock prices.
• Prime Minister Takachi’s policies prioritized defense, shipbuilding, and decarbonization sectors.
• Corporate internal reserves doubled in 10 years, reaching ¥630 trillion in FY2024.
• Labor distribution ratio fell to 64% in FY2024, highlighting insufficient wage growth.
• Share buybacks exceeded ¥10 trillion by July 2025, surpassing last year’s record.
• Financial Services Agency began revising corporate governance guidelines in October 2025.
Summary
The Nikkei 225 index broke the ¥50,000 mark in October 2025, a historic milestone driven by global monetary easing, fiscal stimulus, and the economic potential of generative AI. Prime Minister Takachi’s focus on key sectors like defense and decarbonization further fueled stock price growth. However, the benefits of this stock surge have not reached the broader population, as corporate internal reserves have grown significantly while wage growth and capital investment remain stagnant. Labor distribution ratios have declined, and companies have prioritized share buybacks over sustainable investments. To address these issues, the Financial Services Agency is revising corporate governance guidelines to ensure better utilization of corporate cash reserves. Broader reforms are essential to create an economy where growth benefits all layers of society.
