Nikkei Average Starts 2026 with a Surge, Reaching 51,832 Points — Highest Since October

Stocks Jump in the First Trading Day of the New Year

The 2026 stock market kicked off on a high note. The Nikkei 225 surged sharply after three days of sideways trading, closing at 51,832 points — up 1,493 points from the previous year’s end. This marks the highest level since October 31 of last year.

In Tokyo’s market, the Topix index also hit new record highs, reflecting a bullish trend. With the U.S. economy showing signs of stability and expectations that easy monetary policies will continue, the fundamentals are supporting a market rally.

2026 Market Outlook — Expectations of Reaching 60,000 Points

Many market analysts are betting that the Nikkei will hit 60,000 points this year. The consensus among media and experts is that the market will stay relatively flat until spring, then pick up momentum in the summer, pushing the Nikkei toward that 60,000 mark.

Technical analysis shows a breakout from a symmetrical triangle pattern on the daily chart, suggesting that the January rally could push the index toward 52,000–53,000 points in the near term.

Market Trends for 2026 — Moving Toward a Balance After AI Focus

This year’s key theme is a shift from an AI-driven market to a more balanced approach. We expect diversification across growth and value stocks, large-cap and small-cap shares, with Japan, Europe, and emerging markets continuing to outperform the U.S.

Despite a turbulent 2025 caused by the Trump-era tariff shocks, which saw the index dip into the low 30,000s, the market ended the year up by 26.2%. 2026 is seen as the year when inflation is fully embraced, transitioning into a positive inflationary cycle that supports ongoing growth.

Rising Interest Rates, Yet Stocks Remain Strong

Long-term interest rates in Japan hit their highest levels in 27 years, but stock markets aren’t panicking. Investors believe corporate profits can withstand higher borrowing costs, and the focus is on navigating the current trend effectively.

Forex Market: Yen Weakens Against the Dollar

Meanwhile, in the currency markets, optimism about the U.S. economy has led to a stronger dollar and a weaker yen. The yen fell by about 1 yen against the dollar, closing around 156.85 yen per dollar.