Nikkei Hits Record High, Boosts Stock Market as Dollar Weakens

Rowan Ashford

Published: February 10, 2026 6:16 AM ET

World stock markets reached new highs, primarily fueled by a significant rally in Japan following Prime Minister Sanae Takaichi’s election victory. This event stirred investor confidence, pushing the Nikkei 225 index up by 2.3%. This marks the index’s third consecutive day of gains, reaching a record peak.

Nikkei Hits Record High

The optimism in Japanese stocks can be attributed to Takaichi’s plans for fiscal stimulus. Analysts had initially expected a decline in Japanese government bonds and the yen, but instead, both have seen gains this week. This shift reflects hopes that political stability and stimulus measures will enhance growth and investor sentiment.

Market Performance

The Nikkei 225 is up 12% year-to-date.
Asia-Pacific shares outside Japan increased by 0.6%.
European shares hovered near positive levels.
The MSCI All-Country World Index rose by 0.2%, achieving a fresh record.

The tech sector continues to perform well globally, contributing to the overall rise in markets. Despite a recent sell-off in tech stocks, the Nasdaq Composite gained 0.9%. Analysts remain optimistic about the tech rally, particularly in disruptive technologies.

Upcoming Economic Data

Investors are closely monitoring several key U.S. economic indicators. This week will see the release of delayed retail sales data, January payrolls, and inflation statistics. Economic advisor Kevin Hassett noted lower job gains may occur as immigration policies impact labor growth, potentially affecting Federal Reserve policies.

Dollar Weakens Against Yen

The U.S. dollar remained steady against most currencies but fell by 0.4% against the yen, trading at 155.3 yen. The broader U.S. dollar index saw a slight decline of 0.1%, lingering near its lowest levels of the month.

Market dynamics are further complicated by a Bloomberg report indicating that Chinese regulators advised financial institutions to reduce holdings of U.S. Treasury bonds due to market concerns. Recent actions by U.S. Treasury officials aimed to strengthen communication channels with Chinese counterparts.

Global Economic Landscape

While British government bonds displayed a slight improvement, Indonesian markets remained stable even amid index review delays. Investors continue to assess the impacts of potential downgrades in Indonesian market status, underscoring the importance of data transparency.

Brent crude was trading down at $68.90.
Gold prices fell by 0.5% to $5,043 per ounce.
Silver also decreased by 1.6%, pricing at $81.90 per ounce.

As global markets react to Takaichi’s election victory and upcoming U.S. economic data, the interplay between political climate and market response remains critical to watch.