Nikkei Average Hits Record High at 52,518, Top Financial Leaders Eye 2026 Economy with Optimism

Nikkei Average Reaches Highest Level Since October Last Year

On the Tokyo stock market day of the 6th, the Nikkei 225 closed up by 685 points at 52,518 yen, surpassing the previous record set in late October of last year. This rally follows the U.S. Dow Jones hitting new highs, which helped kick off the trading session on a strong note, with the index climbing into the 52,000-yen range right from the opening. [1]

Buyers kept stepping in, pushing the index toward the 52,500 mark during the afternoon session. The broader TOPIX index also posted a daily high, outpacing the Nikkei in percentage gains, fueling a relentless wave of optimism that’s been building since the start of the new year. [1]

Top Financial Leaders Are Optimistic About the 2026 Economy

At the New Year’s celebration hosted by Japan’s three major economic organizations, industry leaders expressed confidence about the economic outlook and stock market performance through 2026. [2] Nomura Securities President Kentaro Okuda said, “Both Japan and the global economy are expected to continue growing steadily,” estimating Japan’s growth rate at around 0.9%. [2]

He also predicted the Nikkei could reach around 59,000 yen by the end of 2026. Similarly, Sumitomo Mitsui Banking Corporation President Akihiro Fukutome commented, “The economy performed very well last year, and that momentum is still going strong,” highlighting robust investment activity and renewed corporate investment enthusiasm. [2]

Regional Business Leaders in Kansai Also Support Wage Hikes

Shingo Torii, Chairman of the Osaka Chamber of Commerce and Industry and Vice Chairman of Suntory, said that wage increases exceeding inflation are feasible, emphasizing, “I believe it’s possible. Japan’s economy remains resilient.” He pointed out that manufacturing is a key driver, with overseas sales accounting for about 40%, stressing the importance of leveraging technological strengths abroad. [4]

Meanwhile, Masayoshi Matsumoto, Chairman of the Kansai Economic Federation, described the regional economy as “moderate” but expressed concern over China’s economic trajectory, which heavily influences the Kansai region due to its high economic ties with China. [4]

Market Outlook and Future Trends

Market analysts see the recent breakout from a consolidation pattern as a sign that the index could rise to around 52,000–53,000 points. The decline in long-term interest rates is encouraging investment in cyclical stocks, which are also trending upward. [1]

Meanwhile, U.S. markets saw the Dow Jones hit new two-week highs, with the Nasdaq and S&P 500 also climbing, though their gains are about half of the Dow’s. The global rally continues to build momentum, reflecting cautious optimism among investors. [1]