Nikkei 225 Approaches Record Highs Following Strong Japanese Machine Orders Data

The Nikkei 225 Index surged to ¥57,610, nearing its year-to-date peak of ¥57,928 amid renewed investor optimism. This rally was primarily fueled by a significant rebound in Japanese machinery orders, which jumped 19.1% month-on-month in December. The data marks a sharp recovery from the 11% decline recorded in the previous month, signaling underlying industrial strength. Additionally, the Japanese market benefited from a positive spillover effect as major US indices, including the Dow Jones and Nasdaq 100, gained over 0.50%. Analysts suggest that the combination of robust domestic macro data and global risk-on sentiment could push the index toward the ¥60,000 psychological level. Market participants remain focused on whether this momentum can sustain a breakout to new historical highs.