---
title: "The Nikkei Average Index closed up 1,603 points or 3.4%, breaking the record, with SoftBank and bank stocks expanding their gains in the afternoon"
description: "The Nikkei average index rose by 1,603 points or 3.4%, reaching a new high of 49,185 points. The Liberal Democratic Party of Japan and the Japan Innovation Party will sign a joint governance agreement"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261823545.md"
published_at: "2025-10-20T06:57:54.000Z"
---

# The Nikkei Average Index closed up 1,603 points or 3.4%, breaking the record, with SoftBank and bank stocks expanding their gains in the afternoon

> The Nikkei average index rose by 1,603 points or 3.4%, reaching a new high of 49,185 points. The Liberal Democratic Party of Japan and the Japan Innovation Party will sign a joint governance agreement, eliminating political uncertainty and easing market concerns over bad debts in U.S. banks. AI concept stocks and semiconductor stocks led the gains, with SoftBank and Kioxia rising by 8.5% and 9%, respectively. Bank stocks also performed strongly, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corporation rising by 4.1% and 4.7%, respectively

Japanese stocks hit a new high, as the Liberal Democratic Party and the Japan Innovation Party are set to sign a coalition governance agreement. There is a strong chance that Liberal Democratic Party President Sanae Takaichi will be elected as Japan's Prime Minister. With the political uncertainties eliminated, the market is also easing concerns over bad debts at U.S. banks and anticipating a reduction in trade tensions between China and the U.S. The Nikkei average opened 750 points higher and expanded its gains, closing at a daily high of 49,185 points, up 1,603 points or 3.4%.

AI concepts and semiconductor stocks led the rally, with SoftBank (9984.JP) and memory chip maker Kioxia (285A.JP) rising 8.5% and 9%. Raytech (6920.JP) and Tokyo Electron (8035.JP) increased by 5.9% and 4.4%. Seiko (3436.JP), Discus (6146.JP), and NVIDIA supplier Advantest (6857.JP) rose between 3.4% and 3.8%.

Electricity stocks saw Tokyo Electric Power Company (9501.JP) rise by 2.7%. Wire stocks such as Furukawa Electric (5801.JP) and Fujikura (5803.JP) increased by 3.8% and 4.6%. Heavy industry stocks Mitsubishi Heavy Industries (7011.JP) and Kawasaki Heavy Industries (7012.JP) rose by 2.8% and 2.1%, while IHI (7013.JP) increased by 4.9%. Automotive stocks Toyota (7203.JP) and Honda (7267.JP) rose by 2.4% and 3.1%, and battery stock Panasonic (6752.JP) increased by 1.8%.

Banking stocks Mitsubishi UFJ Financial Group (8306.JP) and Sumitomo Mitsui Banking Corporation (8316.JP) rose by 4.1% and 4.7%, while Mizuho Financial Group (8411.JP) increased by 6.2%. In other stocks, Fast Retailing (9983.JP) and Nintendo (7974.JP) rose by 3.8% and 3.2%, Sony (6758.JP) increased by 2.8%, while Rakuten Group (4755.JP) and Hitachi (6501.JP) rose by 0.8% and 1.9%. Ryohin Keikaku (7453.JP) fell by 2.5%. IP operator Sanrio (8136.JP) rose by 0.6%.

The dollar fell against the yen, reporting at 150.59

### Related Stocks

- [SMFG.US - Sumitomo Mitsui Financial](https://longbridge.com/en/quote/SMFG.US.md)
- [SOBKY.US - SoftBank](https://longbridge.com/en/quote/SOBKY.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.