Archive · 23 Dec 2025
Japan's Stock Market Continues Strong Growth in 2025
Japan's stock market has been doing really well in 2025, with the Nikkei 225 index going up by 26%.
This is better than the S&P 500 in the U.S., which went up by 17%.
Japan's economy is growing, and wages and prices are also increasing.
The Bank of Japan has raised interest rates to their highest level in 30 years, which shows confidence in the economy.
Japan has a lot of debt, but it's managing it well.
The government is spending money on important things like technology and defense.
Some people are worried about the rising bond yields, but overall, Japan seems to be in a good place for investors in 2026.
Japan's Nikkei 225 index up 26% in 2025, outperforming the S&P 500's 17% rise.
Japan in a reflation phase with growth in wages, prices, and GDP.
Bank of Japan raised interest rates to highest level in three decades.
Japan's public debt at 200% of GDP, but debt-to-GDP ratio has fallen from 212% in 2022.
Prime Minister Sanae Takaichi's stimulus package worth 3.4% of GDP, focusing on strategic sectors like semiconductors and defense.
- Who
- Japan's economy and stock market
- What
- Strong growth and rising stock market
- When
- 2025 and 2026
- Where
- Japan
- Why
- Reflation phase, corporate governance reforms, and global tech supply chain role
- Nikkei 225 Index
- Up 26% in 2025
- S&P 500 Index
- Up 17% in 2025
- Japan's Public Debt
- 200% of GDP
- Japan's 10-Year Bond Yield
- 2.08% in 2025
- Japan's 30-Year Bond Yield
- 3.43% in 2025
- Japan's Nominal GDP Growth
- 3.1% average over last 4 years
- Japan's Debt-to-GDP Ratio
- Fell from 212% in 2022 to 200% in 2025
- Prime Minister Sanae Takaichi's Stimulus Package
- 3.4% of GDP
