Nikkei 225 Breaks 62,000 as Tech and Materials Stocks Surge in Broad Rally
Japan's Nikkei 225 surged past the 62,000 mark for the first time on Thursday, climbing 5% in a broad rally that saw major technology, materials, and electronics stocks post double-digit gains.
Electronics maker Ibiden led the charge with a 22.43% jump, while SoftBank Group soared 16.45% and Mitsui Kinzoku gained 17.05%. Renesas Electronics rose 13.42%, and chemical firm Tosoh Corporation added 11.03%.
The rally came as Tokyo markets reopened after the Golden Week holidays, allowing investors to absorb a week of U.S. tech sector strength in a single session. Wall Street's tech-heavy Nasdaq hit another record, and the S&P 500 closed at an all-time high of 7,365, up more than 16% from its March 30 low.
Other Asian markets posted more modest gains. Hong Kong's Hang Seng rose 1.48%, China's CSI 300 edged up 0.13%, and Australia's S&P/ASX 200 advanced 0.83%. South Korea's Kospi slipped 0.17% after hitting an all-time high on Wednesday.
Geopolitical developments also weighed on sentiment. President Donald Trump told PBS that a U.S.-Iran agreement could be reached before his upcoming visit to China, but later warned that Iran would face military action if it rejects the proposed peace deal. The mixed signals have kept oil markets and global risk assets sensitive to headline flow.
“This is a classic case of pent-up demand meeting a tech-fueled narrative,” said Hiroshi Tanaka, a Tokyo-based market strategist. “But the Iran situation is a wild card—if things escalate, even the AI trade won't save the Nikkei from a correction.”
Yuki Nakamura, a retail investor in Osaka, was more blunt: “Everyone's celebrating today, but I've seen this movie before. One tweet from Trump or a missile test and we're back to square one. Markets are drunk on AI hype.”
“The fundamentals are solid for now,” said Emily Chen, an analyst at a Hong Kong-based brokerage. “AI-related demand is real, and Japanese suppliers are well-positioned. But the rally's sustainability depends on earnings momentum and a stable geopolitical backdrop.”
Whether Japan's rally extends will depend on continued AI momentum and the trajectory of Iran negotiations. For now, investors are enjoying the ride—but with one eye on the horizon.
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Read the Original story by Kamina Bashir at beincrypto.com.