The Nikkei 225 Index Closes 0.81% Lower

The Nikkei 225 Index rose 1.02% to close at 57,144 while the broader Topix Index gained 1.21% to 3,807 on Wednesday, recovering losses from earlier in the week as Japan reported strong export growth, boosting the broader economic outlook. Prime Minister Sanae Takaichi was also formally reelected following a decisive electoral victory, shifting focus toward accelerating budget deliberations and implementing the trade agreement reached with US President Donald Trump. Takaichi confirmed the first tranche of projects under Japan’s $550 billion investment pledge tied to the bilateral trade deal first announced by Trump. Separately, the IMF urged Japan to continue normalizing monetary policy and avoid fiscal loosening, warning that reducing the consumption tax would “erode fiscal space and add to fiscal risks.” Financial stocks led the rally, with Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group advancing between 0.5% and 2.8%.

The Nikkei 225 Index went up by 666 points or 1.18 percent on Wednesday to close at 57232 points. The rise was led by GS Yuasa (8.41%), TDK (7.06%) and Fuji Electric (5.29%).

The Nikkei 225 Index rose 1% to above 57,000 while the broader Topix Index gained 1% to 3,800 on Wednesday, recouping losses from earlier in the week as Japan reported strong export growth. Exports surged 16.8% year-on-year in January, marking the fastest expansion in nearly four years, driven by strong shipments to Asia and Western Europe. Exports to China, Japan’s largest trading partner, jumped 32%, rebounding from a modest 5.6% increase in December that had been weighed down by diplomatic tensions. Separately, Japan announced plans to invest $36 billion in US oil, gas, and critical mineral projects as part of its $550 billion commitment under a trade agreement with US President Donald Trump. Financials led the rally, with Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group rising between 2.1% and 3.2%. Select technology and AI-related names also advanced, including Tokyo Electron (+3%), Fujikura (+3.2%), and Lasertec (+1.7%).