Nikkei 225 Nears 52,000 as Fast Retailing Shares Soar on Earnings

The Nikkei 225 index demonstrated a bullish trend, gaining 1.61% to close at 51,939.89, edging closer to the 52,000 level. This upward momentum was largely fueled by strong performances in the retail and automotive sectors, offsetting declines in some technology stocks.

Fast Retailing Co., Ltd. (9983), the operator of Uniqlo, experienced a significant surge, with shares jumping 10.67%. This impressive gain followed the release of the company's first-quarter earnings report, which revealed a substantial increase in both profit and revenue. Profit attributable to owners rose by 11.7% to ¥147.45 billion, while revenue for the quarter ending November 30, 2025, reached ¥1.03 trillion, a 14.8% year-on-year increase. The markets reacted positively to these robust figures, driving up demand for Fast Retailing shares.

The automotive sector also contributed to the Nikkei 225's positive performance. Toyota Motor Corporation (7203) saw its shares increase by 2.85%, reflecting investor confidence in the company's strong sales and overall market position. This upward trend in the automotive sector underscores the recovering global economy and the continued strength of Japan's leading car manufacturers.

Financial institutions also displayed positive momentum, with Mitsubishi UFJ Financial Group (8306) gaining 1.46%, along with Sumitomo Mitsui Financial Group (8316), and Mizuho Financial Group (8411) all closing the day in positive territory. This collective gain in the financial sector suggests a favourable outlook for Japan's banking industry, further bolstering market sentiment.

However, not all sectors experienced gains. Technology giants Sony Group Corporation (6758) and SoftBank Group Corp. (9984) faced declines of 1.37% and 0.86%, respectively. These dips could be attributed to profit-taking activities and sector-specific challenges that are currently affecting tech stocks, demonstrating the market's complex dynamics.

Adding to the positive sentiment, Viswas Raghavan, head of banking at Citigroup, announced significant investment plans for Japan, with a particular focus on midsize companies amid an increase in mergers and acquisitions. This strategic move highlights the growing attractiveness of Japan's corporate landscape to international investors, further fueling market optimism.