Manufacturing and finance resurgent as economy shifts to inflation from deflation

20251230N Nikkei Average

The Nikkei Stock Average ended the year at a record high of over 50,000 on Dec. 30. (Photo by Shun Kato)

AKIRA INUJIMA

December 31, 2025 04:57 JST

TOKYO — Japanese stocks had a banner year in 2025, lifted to new heights by the artificial intelligence boom, Prime Minister Sanae Takaichi’s plans to bolster manufacturing and a reassessment of the financial sector amid rising interest rates.