Japan's Nikkei crosses 68,000 mark as AI stocks rally
- The Nikkei was up 2.2% at 68,203.79 in morning trade, while the broader Topix gained 1.5% to 3,982.89
TOKYO: Japan’s Nikkei share average topped 68,000 for the first time on Wednesday, just two days after breaching 67,000, as a rally in AI-related stocks outweighed concerns over the Middle East.
The Nikkei was up 2.2% at 68,203.79 in morning trade, while the broader Topix gained 1.5% to 3,982.89.
Shares of Kioxia Holdings rose as much as 7.2% to top the 80,000 yen level for the first time after the high-flying memory maker said it will start paying dividends from fiscal 2027, helped by strong earnings.
It also briefly overtook Toyota Motor as Japan’s second-most valuable firm, according to the Nikkei newspaper.
Chip-making equipment maker Tokyo Electron and semiconductor testing equipment maker Advantest together lifted the Nikkei by nearly 840 points, jumping 10.3% and 4.1%, respectively.
“Following the overnight lead from Wall Street and several additional positive catalysts, semiconductor and AI-related shares are once again among the biggest gainers today,” said Maki Sawada, an equities strategist at Nomura Securities.
“Gains in AI-linked shares, supported by robust demand expectations, continue to underpin the rally.”
Among the Tokyo Stock Exchange’s 33 industry groups, 25 rose, led by a 6.3% jump in nonferrous metals. Pharmaceuticals was the worst performer, falling 2.2%.
Oil prices, meanwhile, rose a little over 1% after hostilities in the Middle East escalated, with Iran firing missiles at Kuwait and Bahrain, while diplomatic talks with the United States showed little progress.
The largest percentage gainers in the blue-chip index were semiconductor equipment maker Screen Holdings, up 13.9%, followed by cables and optical fibre producer Fujikura gaining 11.1%.
The biggest laggards were software testing provider SHIFT , down 9.2%, and heavy machinery manufacturer IHI with a 5.5% fall.
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