It was a dramatic year of ups and downs in Japanese markets with a wide range of forces and factors at work, from interest rates to artificial intelligence. Most of all, 2025 was a year in which political leaders had an outsized effect on stocks, bonds and currencies, for better and for worse.
“The market is increasingly being driven by politics,” said Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management.
During the first quarter, tariffs threatened and ultimately put into place by U.S. President Donald Trump dominated sentiment. He took office in January. By April, investors were taking his threats about tariffs seriously.