Institution: Kaishi Wanao, AI, and corporate reform pave the way for the rise of Japanese stocks next year.

According to analysis by institutions, it is expected that the Japanese stock market will continue to rise in 2026 due to Prime Minister Takaichi Saenae launching a radical fiscal plan on the basis of the momentum in the past year. The TOPIX index in Japan has withstood challenges such as tariff impacts, two interest rate hikes by the Bank of Japan, and a change in prime ministers, rising by about 23% this year and expected to achieve its largest increase relative to the S&P 500 index since 2022. Strategists say that this rally sets a foundation for further gains. Previously, Japan's benchmark stock index has repeatedly hit new highs. With the Takaichi government promising to provide trillions of yen in domestic financing, stocks in construction, infrastructure, and energy sectors are expected to shine next year. As the focus of technology shifts to physical artificial intelligence, robot manufacturers may also come out on top. Due to rising interest rates, bank stocks have been one of the best-performing stocks this year, and it is expected that bank stocks will continue to rise as well.