Nikkei Surges to Historic Highs Amid Profit-Taking and Fiscal Stimulus Speculation

The Japanese Nikkei index marked an unprecedented leap, underscoring the resilience of the nation's stock market despite ongoing profit-taking by investors eager to capitalize on recent gains. By the close of trading on Tuesday, October 7, 2025, the Nikkei 225 settled at 47,950 points, after climbing 1% to a record high of 48,527 points. In parallel, the broader Topix index advanced 1.85% to close at 3,227 points.

Bond yields demonstrated notable stability as Japanese government ten-year yields held firm at 1.684%. Meanwhile, the U.S. dollar rose 0.2% against the yen, reaching 150.65 yen per dollar.

Corporate standouts included Advantest, a semiconductor testing equipment manufacturer, which saw its shares rise by 0.65%. SoftBank, renowned for its investments in artificial intelligence, posted a gain of 1.1%.

This historic ascent followed a remarkable 4.8% surge in the Nikkei during the previous session, surpassing 48,000 points for the first time ever and posting its largest single-day gain since early April. The rally was fueled by expectations that Sanae Takaichi would become Japan's next Prime Minister, with her policies promising further fiscal stimulus and greater monetary easing.