The Nikkei 225 Index Closes 0.51% Higher

The Nikkei 225 Index edged up just 0.01% to close at 64,999 on Wednesday, while the broader Topix Index fell 0.52% to 3,918, as Japanese equities gave up earlier gains amid profit-taking following a strong rally to record highs. Investors also remained cautiously optimistic that the US and Iran could still secure a peace agreement despite renewed hostilities in the Middle East. On the domestic front, Bank of Japan Governor Kazuo Ueda warned about rising inflationary pressures stemming from higher oil prices but stopped short of signaling whether an interest rate hike could be delivered at the central bank’s next policy meeting. Technology and artificial intelligence-related shares led the pullback, with notable declines from Kioxia Holdings (-3.1%), SoftBank Group (-7.3%) and Fujikura (-3.6%). Other major index heavyweights also moved lower, including Furukawa Electric (-6.7%) and Murata Manufacturing (-3.2%).

The Nikkei 225 Index went up by 330 points or 0.51 percent on Wednesday to close at 65326 points. The rise was led by Shin-etsu Chemical (5.20%), Konami (5.15%) and Screen Holdings (4.67%). On the downside, the weakerst performers were Furukawa Electric (-7.37%), Softbank (-6.87%) and Sumitomo Realty & Development (-6.17%).

Asian equity markets climbed to new record highs on Wednesday following a tech-led rally on Wall Street overnight, with stocks in Japan and South Korea leading regional gains. Renewed optimism surrounding artificial intelligence and related technologies continued to drive the market higher. Investors were also cautiously optimistic that the US and Iran could strike a peace deal despite fresh hostilities in the Middle East.