FX.co ★ Nikkei 225 Subdued in Thin Holiday Trade

The Nikkei 225 increased by 59 points, or 0.1%, to reach 50,403 during early Thursday trading. This movement reversed the slight losses from the previous session, following Wall Street’s S&P 500 achieving another record high in a holiday-shortened session, thus extending the so-called "Santa rally." Trading volumes were relatively low as investors anticipated the upcoming cabinet approval of Japan’s fiscal year 2026 budget, projected to be around JPY 122 trillion. This would represent a consecutive record high and could potentially receive approval as early as Friday. Major companies provided modest support for the index, with Toyota Motor gaining 0.5% and SoftBank Group advancing by 1.0%. Other significant gainers included Tokyo Electron with a 0.9% increase, Nintendo rising by 0.8%, and Itochu moving up 0.6%. Conversely, Sapporo Holdings declined by 0.5%, despite reports that a consortium led by KKR and PAG has agreed to purchase its real estate subsidiary, valued at approximately USD 3 billion. This transaction is anticipated to be finalized in stages over the next three years, with the first phase, involving a 51% stake, expected to conclude by next June.