Corporate results and artificial intelligence raise the Japanese Stock Exchange to a record level | economy

Japan’s Nikkei index closed above 60,000 points for the first time today, Monday, supported by strong business results for technology and automated manufacturing companies, and investor optimism in artificial intelligence and semiconductor stocks, while market fears of the repercussions of the US-Israeli war on Iran temporarily subsided.

The Nikkei Index – the main index of the Japanese Stock Exchange – rose 1.38% to close at a record level of 60,537.36 points, while the broader Topix Index rose 0.5% to 3,735.28 points, which is an index that includes shares of about 2,000 companies in Japan.

Powerful results

The shares of Keynes, which specializes in factory automation systems, and the shares of Fanuc, which manufactures factory robots, led the gains of the Nikkei index after each of them jumped by about 16%, which is the maximum permissible daily, after the two companies announced better results than expectations after the close of Friday’s trading, the last trading of last week.

The rise of the Japanese market was also linked to a global wave of optimism towards technology stocks, after the main indices on Wall Street closed at record levels on Friday, following Intel’s announcement of results that exceeded expectations, supported by demand for products related to artificial intelligence.

Intel achieved revenues of $13.6 billion in the first quarter of 2026, with adjusted earnings per share of $0.29, and expected revenues between $13.8 and $14.8 billion in the second quarter, indicating continued demand for chips and processing units used in data centers and artificial intelligence.

Reuters quoted Maki Sawada, a stock analyst at Nomura Securities, as saying that stocks linked to financial results announcements, along with stocks of companies related to artificial intelligence and semiconductors, led the Japanese market to rise, adding that investors’ attention will turn this week to the announcement of the results of major companies in Japan and the United States.

Hormuz influence

The Nikkei began today’s trading with a decline, before rebounding strongly after a report published by the American website Axios stating that Iran had presented a new proposal to the United States to reopen the Strait of Hormuz and end hostilities, while postponing the nuclear negotiations to a later stage.

Investors in Asia are following developments in the Strait due to its role in global energy trade, as any easing of tensions supports risk appetite, while the continuation of the crisis puts pressure on oil prices and inflation and growth expectations.

94 stocks increased within the Nikkei index, while 130 stocks declined, which reflects that the rise was largely driven by specific stocks with an influential weight, especially in technology and automated manufacturing.

SMC shares were among the biggest gainers, rising 7.1%, after Reuters reported that the Palliser Capital fund had pumped a large investment into the company, while ROM shares fell 9.19% after Denso, a manufacturer of auto parts, said it was considering withdrawing its acquisition offer.

New barrier

The level of 60,000 points represents a new psychological barrier for the Japanese market (a hypothetical barrier that is difficult for the index to overcome), and it may prompt some investors to take profits after a strong rise, especially if company results or developments in the Middle East fall short of market expectations.

Stock analyst Sawda said that a number of investors are monitoring this level because of its psychological importance, so profit-taking sales may appear.