The Nikkei 225 rose 267 points, or 0.5%, to end at 50,675 on Friday, rebounding from three muted sessions and posting a second straight weekly gain of 0.7%, lifted by strength in several heavyweight blue chips. Meanwhile, Japan’s broader Topix index briefly hit a record high before easing. Sentiment was lifted by cabinet approval of a record budget for FY 2026, aimed at balancing proactive fiscal support with long-term debt management, and set to be submitted to the Diet in January. Markets also reacted to plans that Tokyo may reduce issuance of super-long bonds next year, pulling benchmark government bond yields back from a 26-year top. However, early gains were trimmed amid a steeper-than-expected drop in Japan's industrial output, easing retail sales growth, and an unchanged jobless rate at its highest since July 2024. SoftBank Group (1.8%), Fast Retailing (1.9%), Advantest (2.4%), and Nintendo (2.1%) gained, while Sumitomo Electric (-4.7%) and Tokyo Electric Power (-2.4%) lagged.