Japan Stocks See World-Beating Start to 2026 on Takaichi Boost

A screen displays rising share prices inside the Kabuto One building in Tokyo.Photographer: Kiyoshi Ota/Bloomberg

Japanese equities are enjoying a knockout start to 2026 as Prime Minister Sanae Takaichi’s growth policies propel stocks from chips to defense to the top of developed market rankings.

The three best performers on the MSCI World Index so far this year are Japanese firms, with chipmaker Kioxia Holdings Corp. gaining almost 120% to top the list. Defense contractor Kawasaki Heavy Industries Ltd. and chip materials producer JX Advanced Metals Corp. are not far behind, both rising more than 60%.