Japan's Nikkei rises to 44,000 for first time on trade, spending optimism

Headline Summary

“Nikkei Hits Record 44,000 on Trade Optimism and Stimulus Prospects” On September 9, 2025, Japan’s Nikkei 225 Index surpassed 44,000 for the first time, marking a historic high.

Body Summary

• Trade Optimism: The U.S. is set to lower tariffs on Japanese automobiles by September 16, boosting market sentiment.

• Political Shift: Prime Minister Shigeru Ishiba, known for fiscal conservatism, announced his resignation. Sanae Takaichi, who supports stimulus spending and monetary easing, is expected to run in the LDP leadership race.

• Market Reaction: The Nikkei rose 0.9% to 44,018.78, while the broader Topix index gained 0.4%. There were 144 advancing stocks versus 77 decliners.

• Key Movers:

  • Top gainer: Advantest (+6.7%)

  • Biggest loser: Citizen Watch (-5.8%), slated for removal from the Nikkei in October

My Commentary & Takeaways

This milestone for the Nikkei isn’t just about numbers—it reflects a shift in investor confidence driven by trade clarity and political change. The anticipation of economic stimulus and easing policies seems to be energizing the market. However, it’s worth watching whether this momentum translates into sustainable growth beyond the short term.