Japan's stock market continues its strong rally, with the Nikkei index soaring to a new record, surpassing 53,000 points. Investors speculate that Prime Minister Sanae Takaichi is preparing to announce a parliamentary dissolution to advance economic stimulus policies.
On 13 Jan 2026 GMT+7, NHK reported that the Nikkei index surged to a new intraday record above 53,000 points. Investors speculate that Prime Minister Sanae Takaichi is preparing to announce a parliamentary dissolution for an emergency election to push forward economic stimulus policies, despite the yen weakening to its lowest level in nearly a year.
Tokyo's stock market opened sharply higher on Tuesday morning, with the Nikkei Stock Average climbing above 53,000 points to set a new intraday high. This followed investor expectations that the Japanese government might hold an early election, which would support the ruling party's economic stimulus measures.
Reports indicate that during trading, the Nikkei index rose more than 1,800 points, or about 3.6%, from Friday's closing price. Buying surged from the market opening, driven by the view that Prime Minister Sanae Takaichi's economic policies would help sustain and stimulate Japan's economic growth.
This speculation arose amid the yen weakening to about 158 yen per US dollar, its lowest level in nearly a year. Analysts warned that a weaker yen could exacerbate inflation and import costs, but the stock market appeared to weigh the positive impact of government policies more heavily.
Political sources stated that Prime Minister Takaichi is considering dissolving the House of Representatives to hold an early election as soon as February to strengthen the fragile coalition government. The options under consideration include dissolving parliament on 27 January with elections on 8 February, or dissolving on 3 February with elections on 15 February. The regular parliamentary session is scheduled to open on 23 January.
Source: NHK