Politics · Japan · 3 hrs ago
Japan's stocks rose 30% in Takaichi government's first year
Japan's Sanae Takaichi government marked its first year on October 21, 2026.
The Nikkei share index was 49,316 on the day Takaichi became prime minister in 2025, and it rose about 30% over the year.
Investors welcomed her policy of what she calls “responsible proactive fiscal policy.”
The market's early optimism now faces persistent high inflation and expectations of Bank of Japan rate hikes.
Long-term interest rates have also risen substantially, adding to the challenges.
In its second year, the government will be judged on results, and investors may be less ready to welcome it without reservations.
Japan's Nikkei average rose about 30% during Sanae Takaichi's first year as prime minister.
Takaichi took office on October 21, 2025, and the index stood at 49,316 that day.
The stock market welcomed her government's pledge of responsible and proactive fiscal policy.
Persistent high inflation has kept expectations of Bank of Japan rate increases strong.
Long-term interest rates have also risen sharply, making the outlook for the government's second year less certain.
- Who
- Prime Minister Sanae Takaichi and Japan's stock market.
- What
- The Nikkei average rose about 30% during Takaichi's first year in office.
- When
- The year ran from October 21, 2025, to October 21, 2026.
- Where
- Japan.
- Why
- The market welcomed the government's pledge of responsible and proactive fiscal policy.
This story does not have two clearly opposing sides.
Sanae Takaichi became prime minister, and the Nikkei average stood at 49,316.
Takaichi's first year in office ended, with the Nikkei average about 30% higher.
- Prime minister
- Sanae Takaichi
- Date she took office
- October 21, 2025
- Nikkei average on first day
- 49,316
- Stock-market change
- About 30% rise during her first year
- Inflation and rates
- High inflation continued, and expectations of Bank of Japan rate increases remained strong
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What people are saying
responsible and proactive fiscal policy