Japan’s Nikkei Stock Average Marks a Closing High on Improving Corporate Profit Outlook (UPDATE 1)

Reuters

13:09 JST, January 6, 2026 (updated at 16:21 JST)

TOKYO, Jan 6 (Reuters) – Japan’s Nikkei share average marked a record closing high on Tuesday as the outlook for domestic company’s profits improved.

The Nikkei .N225 rose 1.32% to close at 52,518,08. The index rose 4% in the first two sessions of the year, taking a cue from Wall Street’s strength.

The broader Topix .TOPX also closed at a record high, rising 1.75% to 3,538.44.

“The fundamental setting for Japanese equities is strong, so that when the market sees positive cues, the appetite grows,” said Kazunori Tatebe, chief strategist at Daiwa Asset Management.

“These fundamentals are based on the shift from deflation to inflation and corporate governance reform. And domestic investors have become more willing to buy Japanese stocks,” he said.

Wall Street ended higher overnight, with surging financial shares helping lift the Dow Jones Industrial Average to an all-time peak. At the same time, energy firms jumped after a U.S. military strike captured Venezuelan President Nicolas Maduro. .N

In Japan, refiner Eneos Holdings 5020.T jumped 5.39%, leading the gain in the Topix’s oil and coal products index .IPETE.T, which jumped 4.7% to become the top performer among the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes.

The bank share index .IBNKS.T climbed 3.35%, with Mizuho Financial Group 8411.T jumping 5%. Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T rose nearly 3% each.

Bucking the trend, Chubu Electric Power 9502.T tanked 9.59%% to become the worst percentage loser on the Nikkei after the Japanese utility disclosed possible problems with earthquake standards used at a nuclear plant.

Of the more than 1,600 stocks on the TSE’s prime market, 84% rose, 13% fell, and 2% traded flat.