Quantmatix Report

Focus: Japan

Market Close: Tue, 30 December 2025

Weekly Insights

Japanese markets edged lower yesterday amid cautious sentiment following recent global trade developments and anticipation of year-end policy signals from the Bank of Japan. The dip in the Nikkei 225 reflects broader rotation away from export-heavy sectors.

Japanese stocks ended the year on a strong note after a volatile but ultimately bullish 2025, driven by corporate governance reforms, AI-related gains in tech/semiconductors, resilient earnings, and economic recovery.

Nikkei 225: Closed the year at approximately 50,339 on December 30 (down 0.4% on the final day, weighed by metals and brokerage stocks). It surged 26–28% for the full year, marking its third consecutive annual gain and closing above 50,000 for a record year-end high in some reports.

Topix (broader index): Closed at 3,409 (down 0.5% on December 30) but up 22% for the year, hitting a record year-end high supported by domestic strength.

Government bond yields rose on fiscal worries but eased after the cabinet curbed super-long bond issuance and approved a record FY2026 budget with restrained debt reliance.

The BOJ had raised its policy rate to 0.75% (30-year high) in mid-December, with meeting summaries (released late December) showing board members favoring further hikes as real rates remain very low.

Overall, Japanese markets closed 2025 strongly despite late-week caution, capping a banner year of catch-up gains versus global peers. Trading volumes were low due to year-end holidays.

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Market Movements

The Nikkei 225 declined 0.4% today and 0.8% week-to-date, while the Topix fell 0.5% over the last trading day and 0.4% week-to-date, reflecting broad-based caution in export and materials sectors.

Top Sector Gainers (1-Day)*

Utilities +0.4%
Energy +0.2%

* equal-weighted

Top Sector Losers (1-Day)*

Materials -0.9%
Communication Services -0.8%
Financials -0.7%

Utilities and Energy led today’s gains, while Materials and Communication Services underperformed, with several names showing short-side pressure since last week’s close.

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Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices.