Most Asian stocks, including Japan’s TOPIX index, hit a record high on December 6, 2025. Despite the thin year-end trading, Japan’s TOPIX index hit a record high, and outperformed the region. The Tokyo Stock Price Index climbing more than 1% on Friday. The Nikkei 225, the leading and most widely quoted stock market index for the Tokyo Stock Exchange (TSE), rose around 0.6% on the same day. Japan’s TOPIX index recorded a strong surge, while Tokyo’s December CPI eased slightly but stayed above the Bank of Japan’s target. The latest data confirms that the prices are still rising faster than the BoJ’s comfort level, and this matters because inflation is still above the target.
The market surge is primarily driven by easing concerns over national debt and supportive bond market dynamics. Policies that eased debt concerns lifted market sentiment, while cabinet approval of a record FY 2026 budget prompted the Japanese stock market to pull back from recent peaks. According to the December data, core consumer prices in Tokyo rose 2.3% year‑on‑year, down from 2.8% in November, and this slowdown was due to the falling utility and energy costs.
Japan’s Nikkei 225 has also gained 0.68 percent on Friday, indicating positive investor sentiment, with buyers more active than sellers. On Friday, December 26, 2025, the Nikkei 225 closed at 50,750.39, supported by strength in tech stocks, year‑end dividend buying, positive cues from U.S. markets, and Japan’s targeted strategies to ease inflation. Trading Economics officially confirmed that the Nikkei 225 had risen by 267 points, or 0.5%, to close at 50,675 on Friday, rebounding after three subdued sessions. It added that the index had recorded a second consecutive weekly gain of 0.7%, supported by strength in several heavyweight blue-chip stocks.
Asian Equities Edge Higher in Thin Holiday Trade as Japan’s Topix Hits Record
Major Asian stocks, apart from Japan, have edged higher on Friday. Asian equities edged higher on Friday amid light year-end trading, with Japan’s Topix index hitting a record high as investors digested fresh consumer inflation and factory output data. Trading volumes remained thin across the region, with several major markets, including Australia, New Zealand, and Hong Kong, closed, while Wall Street futures were largely flat during Asian hours, the Economy Middle East reported.
Asian equities edged higher on Friday amid light year-end trading, with Japan’s Topix index hitting a record high as investors digested fresh consumer inflation and factory output data. Trading volumes remained thin across the region, with several major markets—including… pic.twitter.com/cGImdYPdUC
— Economy Middle East (@Economy_ME) December 26, 2025
Early market gains were pared back following a sharp drop in Japan’s industrial output, which led to slower retail sales growth and left the jobless rate unchanged since July 2024. Elsewhere in the Asian region, South Korea’s KOSPI rose 0.5%, whereas China’s blue chip Shanghai Shenzhen CSI 300 rose 0.3%, while the Shanghai Composite index managed to gain 0.2%.
In Japan, real estate, steel, information and communications, and textile products were the top gainers, whereas mining, insurance, electricity and gas, air transportation, and petroleum and coal products remained as top losers. On the Tokyo Stock Exchange Prime, trading volumes showed gains for SoftBank Group <9984>, KOKUSAI <6525>, Rakuten Group <4755>, Fast Retailing <9983>, Nomura Micro <6254>, Skylark Holdings <3197>, JX Metals <5016>, Nintendo <7974>, Nippon Steel <5401>, Kioxia Holdings <285A>, Otsuka Holdings <4578>, Lasertec <6920>, and Sony Group <6758>. However, despite the broader market rally, notable names including Tokyo Electric Power Company Holdings <9501>, Honda <7267>, Muji <7453>, Marubeni <8002>, Takeda Pharmaceutical <4502>, INPEX <1605>, ENEOS <5020>, Mitsubishi Corporation <8058>, and Shin‑Etsu Chemical <4063> declined.
