The Japanese Stock Exchange continues to reach record levels driven by technology stocks economy

Technology and artificial intelligence stocks continued to lead the rise in Japanese markets, pushing the Nikkei index above 68,000 points for the first time in its history, largely ignoring concerns related to escalating tensions in the Middle East.

The Nikkei index closed up by 2.5% at 68,402.13 points, just two days after it exceeded the level of 67,000 points, while the broader Topix index approached the 4,000-point barrier after touching it during trading before ending the session up 1.8% at 3,996.2 points.

The gains were supported by shares of companies related to semiconductors and artificial intelligence, which benefited from the global wave of optimism towards the sector following the rises recorded in Wall Street markets.

Kioxia Holdings shares jumped by 7.2%, exceeding the level of 80,000 yen (about 515 dollars) for the first time, after the memory card manufacturer announced its intention to start distributing dividends starting in the fiscal year 2027, benefiting from strong profits.

The Nikkei newspaper reported that Kioxia briefly overtook Toyota Motor Company to become the second largest Japanese company in terms of market value.

Shares of Tokyo Electron, which specializes in manufacturing chip-making equipment, rose by 13.4% to a new record high at the close, recording the largest single contribution to the rise of the Nikkei Index by adding 723 points.

Advantest, a manufacturer of semiconductor testing equipment, rose 5.1%, adding another 323 points to the index.

Biggest winners

Maki Sawada, an equity expert at Nomura Securities, said: “After Wall Street’s rise last night and several other positive catalysts, semiconductor and artificial intelligence (AI) stocks are once again among the biggest gainers today… Gains in AI stocks supported by strong demand expectations continue to support the rise.”

Market data showed that 164 stocks listed on the Nikkei index recorded an increase, compared to only 60 stocks that declined.

Among the most notable gainers, shares of Screen Holdings, a manufacturer of semiconductor equipment, jumped by 17.9% to its highest level ever, while shares of Nikon, a manufacturer of cameras and precision optical equipment, rose by about 10%.

On the other hand, the shares of Shift Company, which specializes in software testing, topped the list of losers after falling by 12.2%, while the shares of Toho Company, which works in film production and operation of cinemas, fell by 4.1%.

At the sector level, 25 out of 33 sub-sectors on the Tokyo Stock Exchange rose, led by the non-ferrous metals sector, which rose by 5.7%, while the communications sector was the worst performer, declining by about 2%.

Despite continuing geopolitical concerns, the Japanese market largely ignored the repercussions of the escalation of hostilities in the Middle East, which pushed oil prices to rise by about 1% after the exchange of attacks between Iran and US forces in the region and the faltering diplomatic talks between Tehran and Washington.

Asian markets

The performance of Asian stocks was as follows:

• The Hang Seng Index in Hong Kong fell by 1.57% to 25,630.50 points.
• India’s Sensex fell 0.74% to 74,099.92 points.
• China’s Shanghai Composite Index rose 0.22% to 4,083.97 points.
• The Singapore market index rose 0.63% to 5,129.45 points.