TOKYO — November 10, 2025 — Japan’s stock market rallied on Monday, lifted by progress in the U.S. Senate toward ending the record‑long federal government shutdown. The risk‑on tone pushed the Nikkei 225 up 635.39 points to 50,911.76, while the TOPIX added 0.56% to 3,317.42. The yen weakened toward ¥154 per dollar, and government bonds fell as yields edged higher. Tech and cyclical shares led gains, while some defensives lagged. 1
Why markets surged today
Global equities advanced after a key procedural vote in the U.S. Senate signaled momentum to reopen government agencies following a 40‑day shutdown. The potential resolution brightened risk appetite worldwide, a backdrop that aided Asia and Japan at Monday’s open and into the close. In Europe, optimism helped drive the FTSE 100 to a record close, underscoring the breadth of the relief rally. 2
By the numbers: Japan equities, FX, and bonds
At the close, Nikkei 225: 50,911.76 (+1.27%); TOPIX: 3,317.42 (+0.56%). In currencies, USD/JPY hovered in the high‑¥153s and briefly topped ¥154, reflecting the improved global risk tone. In rates, 5‑year JGB yields rose to ~1.26%, the highest since 2008, while the 10‑year touched ~1.695%, pressuring JGB futures. Traders also eyed Tuesday’s 30‑year JGB auction, with some desks cautious about demand at higher long‑end yields. 1
Leadership and laggards
Heavyweights and growth bellwethers did much of the lifting. Semiconductor equipment names and AI‑linked plays rebounded alongside U.S. futures during Asia hours, while selective defensives underperformed. Olympus jumped after unveiling a restructuring plan that includes ~2,000 job cuts (~7% of the workforce) to streamline operations and improve profitability; the stock saw its biggest one‑day rise in years. Honda, by contrast, slid after cutting guidance, with investors digesting lower profit and operating targets tied to EV costs, Asian demand softness, and chip supply issues. 3
38 stocks set fresh all‑time highs
Breadth improved notably: 38 Japanese stocks printed record intraday or closing highs. The list spanned construction, industrials, trading houses, banks, and select tech and consumer names. Notable entries included Japan Tobacco (2914), Marubeni (8002), Sumitomo Corp (8053), Fast Retailing (9983), Osaka Gas (9532), Ebara (6361), Yamaichi Electronics (6941), Aichi Financial Group (7389), Shizuoka Financial Group (5831), Tomen Devices (2737), Taikisha (1979), Dentsu Soken (4812), Business Engineering (4828) and Taiyo Holdings (4626), which extended a multi‑session streak of highs. Such prints are closely watched because all‑time‑high names face little historical overhead supply, a technical tailwind in momentum phases. 4
Policy watch: BOJ and fiscal signals
While Governor Ueda remains cautious, the BOJ’s latest “summary of opinions” indicated that conditions are gradually falling into place to advance policy normalization, a nuance traders weighed against near‑term growth and wage data. Separately, Finance Ministry and Cabinet signals around fiscal strategy—including Prime Minister Sanae Takaichi’s recent comments on revisiting fiscal targets—kept long‑dated JGBs sensitive to supply expectations heading into the Nov. 11, 30‑year auction. 5
Sector snapshot
- Tech & semis: Higher on improved risk appetite and resilient U.S. peers; futures strength aided Japan’s chip complex. 5
- Cyclicals/materials & construction: Outperformed as investors rotated into economically sensitive names amid shutdown‑resolution hopes. 1
- Defensives (health care, staples): Mixed to softer as risk‑on overshadowed yield‑defensive characteristics. 5
What’s next
- US politics: The Senate’s progress still needs House approval; traders will monitor timelines and any policy riders that could sway risk assets. 2
- Japan rates:Tuesday’s 30‑year JGB sale is a key barometer of duration demand at higher yields. 5
- Corporate catalysts: Ongoing earnings, guidance revisions, and cost‑cut plans—like Olympus—remain powerful single‑stock drivers. 3
Key takeaways for investors
- Macro impulse: Hopes of a U.S. government reopening fueled a global risk rally that carried into Tokyo. 2
- Market internals: The Nikkei’s +635‑point rebound came with broad new‑highs participation (38 names), often a positive breadth signal. 1
- Cross‑assets:Yen near ¥154 (+USD) and higher JGB yields reflect diminished risk aversion; equities typically favor this mix when it’s growth‑driven rather than inflation‑scare‑driven. 6
- Stock stories matter:Olympus surged on restructuring, while Honda fell on a guidance cut—reminding that stock selection remains crucial amid macro‑led swings. 3
This article is for information purposes only and is not investment advice.
