Key Facts
• December 30: Tokyo Stock Exchange held its year-end final trading day (Ōnōkai).
• Nikkei 225 closed down 187.44 yen at 50,339.48 yen.
• Annual gain over previous year-end exceeded 10,000 yen for the first time, a record high.
• AI boom drove the market, pushing year-end Nikkei above 50,000 yen for the first time.
• The Takaichi administration began in October, promoting “responsible proactive fiscal policy”.
• “Takaichi trade” boosted historic stock highs.
• Long-term interest rates surged from about 1.1% at start of year to 2.1% in December, highest in 26 years 10 months.
• Nikkei started near 40,000 yen in January, dropped to yearly low 31,136 yen in April due to US reciprocal tariffs concerns.
• Recovery began after July US-Japan agreement and strengthened with Takaichi Sanae’s prime minister appointment.
Summary
On December 30, the Tokyo Stock Exchange closed its final trading day of 2025 with the Nikkei 225 ending at 50,339.48 yen, down 187.44 yen from the previous day. Despite the daily decline, the annual gain surpassed 10,000 yen for the first time, marking the largest yearly increase in history. This milestone was driven by the artificial intelligence boom and strong market confidence. The Takaichi administration, inaugurated in October with a focus on responsible and proactive fiscal policies, contributed to the historic stock rally known as the “Takaichi trade.” Meanwhile, concerns over fiscal deterioration led to bond sell-offs, pushing long-term interest rates to a 26-year high of 2.1% in December. The year began with the Nikkei around 40,000 yen but fell to a low of 31,136 yen in April amid fears of global economic slowdown due to US reciprocal tariffs. The market rebounded after a US-Japan agreement in July and further strengthened following Takaichi Sanae’s appointment as prime minister, culminating in a record-breaking year-end close above 50,000 yen.
