Japan’s Topix Gauge Touches Record High in Tentative Trade before Fed, BOJ

Reuters

12:53 JST, December 10, 2025

TOKYO, Dec 10 (Reuters) – Japan’s broad Topix gauge of shares touched a record high before turning lower in tentative trading on Wednesday, as investors awaited key central bank decisions at home and abroad.

The Topix .TOPX reached an unprecedented 3,408.99 in early trading before losing steam and was last down 0.2%. The blue-chip Nikkei 225 Index .N225 slid 0.3% to 50,481.99.

U.S. shares were broadly lower overnight on expectation that the Federal Reserve would take a hawkish tone even if it cuts interest rates later on Wednesday.

The Fed is widely expected to make a quarter-percentage-point cut despite inflation still running above the central bank’s 2% target.

Meanwhile, the Bank of Japan has been dropping hints that it is preparing to raise its key policy rate next week to tame inflation and declines in the yen.

“The weak yen environment appears to be the main driver of strength for the broad Japanese stock market today,” said Nomura Securities strategist Wataru Akiyama.

“Once the market has largely priced in this slowdown in the Fed’s rate-cut pace, the yen’s depreciation is likely to stabilize,” he said. “Consequently, the rise in the Japanese stock market, including the Nikkei, depends on this continuing yen depreciation.”

The weaker yen acted as a tailwind for automakers, with Honda Motor 7267.T rising 3.3% and Toyota Motor 7203.T up 1.4%.

There were 130 advancers on the Nikkei against 92 decliners. The largest gainers were DOWA Holdings 5714.T, up 6.7%, followed by Mitsui Kinzoku 5706.T, a major supplier in the artificial intelligence sector that jumped 4.4%.

The largest losers were drugmaker Shionogi 4507.T, down 4%, followed by food additive maker Ajinomoto 2802.T, which slid 3.4%.