2026 Market Opening Sees Nearly 3% Rise in Nikkei Average as Prime Minister Takashi Emphasizes Economic Growth

Stocks Surge at Tokyo Stock Exchange Opening

On January 5th, the Tokyo Stock Exchange kicked off the 2026 trading year with a big rally. The Nikkei 225 closed at 51,832 points, up 1,493 points from the previous day — nearly a 3% jump. [1]

The TOPIX index also hit a new high. Finance Minister Satsuki Katayama attended the event, drawing attention as part of Japan’s first all-female leadership team, alongside Prime Minister Takashi. [1]

• Nikkei 225: 51,832 points (+1,493 points, approx. 3% increase)
• TOPIX: Reached record high
• Yen exchange rate: Closed at 156.85 yen per dollar (weaker yen, stronger dollar)

Highlights from Prime Minister Takashi’s New Year Press Conference

Later that afternoon, Prime Minister Takashi held a New Year’s press conference, emphasizing strong economic growth. He outlined plans to boost investments through increased tax revenues and foster a “virtuous cycle of investment and growth.” [2]

The government’s economic outlook predicts a 1.9% inflation rate for 2026. While close to the 2% inflation target, it’s expected to dip slightly due to free education policies (-0.1%). Nominal GDP growth is forecasted at 3.4%, with real wages rising by 1.3%. [2]

Using over 10 trillion yen in public support within the industry framework, Japan aims to attract more than 50 trillion yen in public-private investments. [2]

Currency Market and Global Trends

In the Tokyo forex market, optimism about the resilient U.S. economy pushed the yen lower. The dollar-yen exchange rate ended at 156.85 yen, down 1 yen from the previous day. [6][3]

In the U.S., the Dow Jones Industrial Average rose by 39 points to 48,382, while the Nasdaq saw slight declines. Key indicators to watch this week include the ADP employment report and the official U.S. jobs data. [1][3]

Market Outlook and Expert Insights

According to Toyo Keizai Online, 2026 is expected to be the year Japan’s economy fully emerges from deflation and enters an inflationary phase. The big rally in Japanese stocks could continue through 2027. [4]

Commentators like Satoshi Jonen predict a yen weakening to 165 per dollar by year-end, along with two interest rate hikes and a long-term interest rate of 3%. Discussions around Prime Minister Takashi’s upcoming U.S.-Japan summit are also gaining attention. [3]

The government is allocating over half of its new comprehensive economic measures to combat rising prices, prioritizing a shift toward a growth-oriented economy. [5]