Japan's Indexes Soared 3% After Tech and Defense Stocks Rallied On First Trading Day of 2026

Akira Ito
05 Jan, 2026
Tokyo

Stocks and gold prices soared, and crude oil prices traded volatile on the first day of trading in 2006 in Tokyo. 

The Nikkei 225 Stock Average advanced 3%, and the broader Topix Index gained more than 2% after investors returned from the Christmas holiday. 

Investors overlooked rising geopolitical tensions in the Americas and bid up tech stocks in Tokyo and Seoul. 

Crude oil prices rebounded from the early decline in trading after the U.S. military conducted a surprise precision attack and captured Venezuela’s president, Nicolas Maduro.

The surprise attack over the weekend sent shock waves through the commodities trading in Asia, but prices rebounded after initial worries of global supply disruption waned.

Gold soared as much as 1.7% to $4,404.24 an ounce, and the crude oil price for the immediate month's delivery eased 0.4% to $56.95 a barrel.

Investors are worried that Venezuela may be destabilized for several years, impacting its crude oil production, which accounts for about one million barrels a day, or about 1% of global output. 

Japan's benchmark indexes soared 28% in 2025 after the U.S. eased its sky-high tariffs on Japanese goods and the newly appointed Prime Minister Sanae Takaichi focused on providing additional stimulus to the economy. 

However, traders worried that the Japanese yen continued to hover near a recent low despite the Bank of Japan signaling higher interest rates in 2026.  

 

Japan Indexes and Stocks 

Stocks in Japan advanced after investors held out for a larger fiscal stimulus, gradual interest rate increase, and weakening Japanese yen. 

The Nikkei 225 Stock Average soared 3% to 51,849.53, and the broader Topix Index gained 2.1% to 3,479.32. 

The South Korea's Kospi Index advanced 3.2% to 4,443.10. 

Investors remained positive, driven by expectations that Japan's tech sector will benefit from global advances in artificial intelligence and related technologies. 

Softbank Group Corp. gained 4.4% to ¥4,595.0, Tokyo Electron jumped 7.6% to ¥36,930.0, and Advantest Corp. increased 7.8% to ¥21,175.0. 

Defense stocks advanced as the Japanese government ramped up its armament purchases and loosened export control. 

Mitsubishi Heavy Industries soared 9.1% to ¥4,190.0, IHI Corp. advanced 9.6% to ¥3,019.0, and Kawasaki Heavy Industries gained 6.6% to ¥11,060.0.