Nikkei closes above 72,000 for first time as AI buying lifts market
Tokyo shares hit fresh records as semiconductor, electronic materials and industrial machinery stocks gained, while the dollar rose against the yen.
- Japan's Nikkei 225 index closed above 72,000 for the first time, ending the day at 72,353.96.
- The record close was driven by strong buying momentum in artificial intelligence (AI) related shares.
- Sectors that saw significant gains included semiconductor manufacturing equipment, electronic materials, and industrial machinery linked to physical AI.
- This was the sixth consecutive session in which the Nikkei posted a record-breaking high.
Japan’s benchmark Nikkei 225 Stock Average closed above 72,000 for the first time on Monday (22 June), extending its record-breaking run to a sixth consecutive session as buying in artificial intelligence-related shares remained strong.
The index, which tracks 225 selected issues on the Tokyo Stock Exchange’s top-tier Prime Market, rose 1,103.90 points, or 1.55 per cent, from Friday to end at 72,353.96.
The broader TOPIX index climbed 50.09 points, or 1.24 per cent, to 4,095.05, also marking a fresh record closing high.
The Nikkei briefly advanced by more than 1,500 points, supported by continued buying of semiconductor and AI-related issues, before paring some gains as investors sold shares to lock in profits.
Buying momentum remained strong for AI-linked stocks, including shares related to semiconductor manufacturing equipment and electronic materials.
The outlook for US-Iran talks to end the conflict remained uncertain.
Qatar and Pakistan, which are mediating the talks, confirmed their intention to continue discussions, while saying the United States and Iran had agreed on a roadmap towards a final agreement within 60 days.
“Investors' sentiment was buoyed by hopes for normalised navigation in the Strait of Hormuz,” an official at a Japanese securities firm said.
Industrial machinery stocks also rose sharply on Monday, as physical AI for autonomous robot control is expected to be a priority investment target in the new growth strategy the government is due to formulate this summer.
Meanwhile, the dollar rose above 161.50 yen in Tokyo trading on Monday.
Expectations of an interest rate hike by the US Federal Reserve this year are increasing because of the solid US economy and inflationary pressures.
Yen selling continued on the view that the interest rate gap between Japan and the United States would not narrow.
At 5pm, the dollar stood at 161.72-161.73 yen, up from 161.32 yen at 5pm on Friday.
[Copyright The Jiji Press, Ltd.]
