FX.co ★ Japan’s Nikkei Notches Two-Week High, Eyes Second Weekly Gain

On Friday morning, the Nikkei 225 rose by 477 points, nearly 1%, reaching 50,892. This marks a recovery from three sluggish sessions and positions the index for its second consecutive weekly gain. The benchmark achieved a two-week peak, driven by widespread sectoral gains. Concurrently, the Topix Index increased by 0.4% for the second day in a row. Investor sentiment was buoyed by Wall Street's record-breaking close on Wednesday, as most global markets were closed Thursday for the Christmas holiday. On the domestic front, Tokyo's cabinet granted approval for the draft fiscal budget for 2026, featuring unprecedented general-account spending of approximately JPY 122 trillion—the first budget under the Takaichi administration, slated for submission to the Diet in January. However, further gains were moderated by new data indicating a greater-than-expected decline in industrial output in November, alongside a deceleration in retail sales growth, despite exceeding projections. The jobless rate persistently remains at its highest level since July 2024. Notable early performers included Fast Retailing, up 2.2%, SoftBank Group at 2.1%, Advantest with a 1.6% increase, and Mitsubishi Electric advancing by 1.1%.