Japan

Intelligence for Better Decision Making

Tokyo stocks reach historic highs as semiconductor rally drives market surge
Jan. 15, 2026 | Financial System

Tokyo’s stock market reached new record highs, propelled by a rally in semiconductor stocks.

**On January 14, Tokyo’s Nikkei 225 opened at 54,050.38 yen—its first entry into the 54,000 range—and climbed 501.22 yen from the previous close.**
For the second day in a row, the index set fresh peaks, closing the morning session at 54,413.92 yen (up 864.76 yen) and reopening in the afternoon at 54,461.07 yen near all-time highs.

**Semiconductor-related shares led the advance, supported by a three-day surge in the US Philadelphia Semiconductor Index.**
Advantest added roughly 330 yen to the Nikkei as the largest single-stock contributor, while Tokyo Electron, FANUC and Yaskawa Electric posted strong gains as investors poured into technology, machinery and precision instruments.

**Investors drew optimism from several supportive factors.**
The yen traded in the low 159-per-dollar range, bolstering exporters’ competitiveness. Geopolitical tensions drove gold above 26,000 yen per gram. Expectations for aggressive fiscal measures under Prime Minister Sanae Takaichi—and a possible snap lower-house election to solidify her mandate for expanded spending—spurred buying in infrastructure-related sectors.

**Trading volume in Tokyo reached 1.19 billion shares with a total value of 3.4782 trillion yen.**
Market breadth skewed positive, with 175 Nikkei components advancing, 47 declining and three unchanged. Mining, precision instruments, machinery and glass and stone products led sector gains, while information and communications, fisheries/agriculture/forestry and land transportation lagged.

**Other Tokyo benchmarks also rose.**
The TOPIX gained 31.40 points to close at 3,630.29, and the Standard TOP20 extended its rally on heavy volume of 318.87 million shares. In contrast, the Growth 250 and Growth Core indices slipped as investors took profits in smaller-cap and growth-oriented stocks.

**Large-cap performance diverged: Advantest, Fast Retailing and Tokyo Electron lifted the market, but a steep drop in SoftBank Group shaved about 158 yen off the Nikkei, and TDK, Daiichi Sankyo and Toyota also retreated.**
This shift reflected sector rotation as investors reallocated toward policy-sensitive and export-benefit plays amid evolving domestic and global economic and political dynamics.
Yen Slides Toward 159 Amid Fiscal Uncertainty and Snap Election Signals
Jan. 15, 2026 | Macroeconomics & Growth

The yen’s fluctuating exchange rate against the dollar reflects growing concerns over Japan’s fiscal policy and market volatility.

**On January 12, Japanese Finance Minister Satsuki Katayama met US Treasury Secretary Scott Bessent in Washington to express shared concern over the yen’s recent steep depreciation.**
Katayama stressed Japan’s serious worry as the currency weakened to a one-year low, and Bessent agreed on the need for coordinated foreign-exchange policy and continued dialogue.

**The yen’s decline accelerated after reports that Prime Minister Sanae Takaichi would dissolve the House of Representatives and call a snap general election for February 8.**
Traders anticipated her administration would pursue more aggressive expansionary fiscal measures, stoking worries about Japan’s fiscal health and prompting widespread yen selling.

**In New York’s FX market on January 13, the yen traded around ¥158.74–158.84 per dollar before weakening to roughly ¥159.11–159.21 in subsequent sessions.**
The euro hovered near ¥185.2–¥185.3, while the benchmark 10-year Japanese government bond yield briefly climbed to 2.150%, its highest level since February 1999. Japanese equities rallied alongside the falling yen: the Nikkei index surged more than 3% intraday to close at 53,623.09, and the Topix gained 2.44% to finish at 3,599.73.

**Traders briefly bought yen after the US December Consumer Price Index showed a 2.7% year-on-year increase, but dollar strength returned as political and fiscal uncertainty in Japan dominated sentiment.**
The dollar index rose to 99.15, while the euro and pound weakened.

**Market participants warn that any move toward the key ¥160 level could spur Japanese foreign-exchange intervention.**
Steven Jen of Eurizon SLJ Capital notes the market skew favors further yen losses, suggesting intervention could trigger a sharp rebound. Kit Jacks of Société Générale views a breach past ¥160 as a short-selling opportunity, pointing out that Japanese authorities focus more on volatility and the pace of moves than on fixed exchange-rate thresholds.

**Analysts expect yen selling to persist alongside anticipated expansionary fiscal policy.**
While cash intervention offers a deterrent, they see limited scope for large-scale operations. Instead, verbal warnings may serve to delay further declines rather than fund major market intervention.

Monitored Intelligence for Japan - Jan. 15, 2026


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384

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51

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147

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1
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0
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26


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0

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1

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

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北日本、北陸で暴風雪警戒 低気圧発達、高波も

Storm and Snowstorm Warning in Northern Japan and Hokuriku as Low Pressure Develops, High Waves Expected

Tokyo Shimbun | Local Language | News | Jan. 15, 2026 | Extreme Weather Events

The Japan Meteorological Agency issued a warning on January 14 about stormy weather and high waves expected in northern Japan and the Hokuriku region due to a rapidly developing low-pressure system. This system, located over the Sea of Okhotsk, is intensifying while moving northeast, leading to gale-force winds and blizzard conditions in these areas through January 15.

Forecasts indicate maximum instantaneous wind gusts of up to 35 meters per second in Hokkaido on the 14th, with slightly lower peaks in Tohoku and Hokuriku reaching up to 30 meters per second. On the 15th, Hokkaido is expected to experience wind gusts of up to 30 meters per second. Wave heights on the 14th are projected to reach 5 meters in Hokkaido and 6 meters in Tohoku and Hokuriku, with Hokuriku also experiencing swells.

「ドンロー主義」で近づく日韓 米つなぎ留め・同志国連携で共闘

Approaching Japan and South Korea with "Donro Doctrine": US Maintaining Ties and Collaborative Alliance as Comrade Countries

Nikkei | Local Language | News | Jan. 15, 2026 | Shifting Geopolitical Alliances

Prime Minister Sanae Takaichi of Japan and South Korean President Lee Jae-myung met in Nara City on January 13, 2026, to affirm strategic cooperation between their countries amid shifting U.S. foreign policy priorities. Their discussion was framed by U.S. President Trump’s "Donro Doctrine," which emphasizes defending interests primarily in the Western Hemisphere, raising concerns about diminished U.S. engagement in Asia.

Both leaders stressed the importance of maintaining the trilateral Japan–U.S.–South Korea alliance in response to security threats in the region, including North Korea’s continued nuclear and missile development, its military cooperation with Russia, and China’s expanding military activities near Japan. Despite U.S. actions such as the attack on Venezuela causing unease, Japan and South Korea prioritized alliance cohesion over openly criticizing these moves.

Regarding China, President Lee maintained a neutral stance, advocating for trilateral communication and cooperation with Japan and China while avoiding contentious historical issues. This reflects a shift from his previous more critical positions on Japan, emphasizing pragmatic diplomacy and national interest since taking office in June 2025. However, potential friction remains, notably around symbolic actions like the possible upgrade of Japanese ministerial attendance at “Takeshima Day,” which could provoke South Korean backlash.

The leaders recognize that public opinion between Japan and South Korea remains fragile and must be carefully managed to avoid undermining their critical security partnership. Both governments are committed to advancing cooperation while navigating historical and political sensitivities that could affect their alliance.

「持ち家か、賃貸か」。法的視点から「住まい」を考える(7)~登記することで、第三者に対して「所有権」を主張できる

Owning a Home or Renting: Considering Housing from a Legal Perspective (7) – Asserting Ownership Rights Against Third Parties Through Registration

NLI Research Institute | Local Language | AcademicThink | Jan. 15, 2026 | UndeterminedLegal Exposure

Real estate registration is a crucial legal system that publicly records ownership rights and relevant facts regarding real estate, helping to clarify rights relationships and ensure transaction safety. Registering property is the formal requirement necessary to assert ownership against third parties, especially in cases like double sales, where the first person to complete registration holds legal protection.

The property registry includes the heading section, Section A, and Section B, where anyone can verify ownership and the content of rights. In practical real estate transactions, registration is usually completed promptly at the time of property delivery. Registration for inheritance acquisitions has become mandatory, further increasing the importance of this system.

Understanding and performing real estate registration helps individuals safeguard their ownership rights legally and avoid disputes. Checking the certified copy of the property registry and not neglecting registration procedures are essential steps for asserting ownership and protecting real estate interests.

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