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Japanese Stocks Soar to Record Highs Post-Election Victory

2/25/2026

Summary

Story summary

Japanese stocks have reached record highs on investor optimism and political stability after Prime Minister Sanae Takaichi's election victory.
The Nikkei 225 has gained 52% and the Topix 41% over the past year.
Bruce Kirk of Goldman Sachs says the market remains in an upward cycle that began in autumn 2022.
Sustaining the rally depends on improving corporate profitability, especially ROE at 9%–10%, and a recovery in foreign investment supports momentum.

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Story summary

Japanese stocks have reached record highs on investor optimism and political stability after Prime Minister Sanae Takaichi's election victory.
The Nikkei 225 has gained 52% and the Topix 41% over the past year.
Bruce Kirk of Goldman Sachs says the market remains in an upward cycle that began in autumn 2022.
Sustaining the rally depends on improving corporate profitability, especially ROE at 9%–10%, and a recovery in foreign investment supports momentum.