Japan’s Topix Gauge Touches Record High on Easing Debt Concerns (UPDATE 1)　

Reuters

12:32 JST, December 26, 2025 (updated at 17:33 JST)

TOKYO, Dec 26 (Reuters) – Japan’s broad Topix gauge touched a record high on Friday, as easing concerns about the nation’s debt gave shares a tailwind.

The Topix .TOPX reached an all-time intraday high of 3,436.75 in early trading before losing some momentum, closing up only 0.2% at 3,423.06. The blue-chip Nikkei index .N225 rose 0.7% to close at 50,750.39, capping a 2.5% gain on the week and on course for a 26% surge in 2025.

The cabinet on Friday approved a record budget for the next fiscal year, aiming to strike a balance between proactive fiscal policy and debt management.

Benchmark Japanese government bonds (JGBs) gained slightly as expectations for restrained debt issuance helped yields retreat from a 26-year peak. JP/

The rebound in JGBs came after Prime Minister Sanae Takaichi sought to ease concerns over her massive stimulus plan, and a Reuters report said the government would likely reduce new issuance of super-long bonds next fiscal year.

“This downward movement in interest rates may also be contributing positively to the Japanese stock market,” said Maki Sawada, an equities strategist at Nomura Securities.

“With just three business days remaining, attention now focuses on whether the Nikkei can close above the 51,000 mark.”

There were 104 advancers on the Nikkei against 117 decliners. The largest gainers on the index were brewery Sapporo Holdings 2501.T, up 2.5%, followed by Disco 6146.T, a maker of precision cutting tools for semiconductors, which added 2.4%.

The largest losers were Sumitomo Electric Industries Ltd 5802.T, down 4.4%, followed by Mitsui Kinzoku 5706.T, a key supplier to the artificial intelligence sector, which sank 3%.