FX.co ★ Nikkei Finishes 0.1% Higher in Subdued Session

The Nikkei 225 advanced by 64 points, or 0.1%, concluding at 50,408 on Thursday, reversing a minor decline from the previous session. This surge followed record highs achieved by Wall Street’s S&P 500 and Dow Jones on Wednesday. Trading activity was relatively muted due to holiday-induced conditions as investors anticipated the potential cabinet approval of Japan’s fiscal year 2026 budget, projected at JPY 122 trillion—a figure that would mark a second consecutive record. The approval might occur as early as Friday. Investor optimism was tempered by a cautious outlook in anticipation of critical domestic economic data expected on Friday. This data includes the December Tokyo Consumer Price Index, November unemployment figures, retail sales, and preliminary industrial output figures. Technology stocks led the market's gains, highlighted by Tokyo Electron, a chip equipment manufacturer, which increased by 1.7%, providing a significant boost to the Nikkei. Fanuc increased by 2.0%, and memory chipmaker Kioxia Holdings saw a 1.8% rise, mirroring the strength observed in its U.S. counterpart, Micron, after its recent record close. Additionally, Sony Group ascended by 1.23%, becoming the largest contributor to gains in the broader Topix index.