Japan’s Nikkei Stock Average Closes at Record High, Logs Biggest Monthly Gain in Four (UPDATE 1)　

Reuters

12:20 JST, February 27, 2026 (updated at 17:24 JST)

TOKYO, Feb 27 (Reuters) – Japan’s benchmark Nikkei share average closed at a record high on Friday, posting its biggest monthly gain in four months, as investors bet on corporate earnings strength.

The Nikkei .N225 reversed early losses to end up 0.16% at 58,850.27.

The index jumped 10.4% in February – its strongest monthly performance since October 2025 – after Prime Minister Sanae Takaichi’s landslide election win in February general elections spurred bets for big fiscal spending.

The broader Topix .TOPX rose 1.5% to 3,938.68 and also jumped 10.4% for the month, marking its biggest monthly gain since November 2020.

“The market became cautious about the fast-paced rally as the Nikkei neared the 60,000-mark, but investors are bullish on the two-digit profit growth rate of companies in Japan in the coming fiscal year,” said Hiroyasu Mori, head of research at Okachi Securities.

Fast Retailing 9983.T, owner of the Uniqlo brand, rose 1.62%, making the biggest contribution to the Nikkei’s gain.

Sony Group6758.T climbed 7.2%, providing the largest boost to the Topix, after the audio-equipment and game maker lifted its share buyback plan to up to 250 billion yen ($1.60 billion) from 150 billion yen.

Software stocks, which had recently come under selling pressure on fears of AI‑driven disruption, rose, with Nomura Research 4307.T and NEC 6701.T adding about 5% each.

Chip-testing equipment maker Advantest 6857.T fell 4.53%, weighing on the Nikkei the most, after Nvidia NVDA.O slipped 5.5% overnight and dragged other U.S. chip stocks lower.

The U.S. Philadelphia SE Semiconductor index .SOX fell 3.2%.

Chip-making equipment maker Tokyo Electron 8035.T lost 2.87% and technology investor SoftBank Group 9984.T slipped 2.6%.

Of the more than 1,600 shares trading on the Tokyo Stock Exchange’s prime market, 90% rose, 7% fell and 2% traded flat.