Japanese Shares Hit Fresh Record Highs

The Nikkei 225 Index jumped 1.9% to approach the 68,000 mark, while the broader Topix Index climbed 1% to 3,963 on Wednesday, as Japanese equities extended their rally to fresh record highs. Investor enthusiasm for artificial intelligence-related opportunities continued to support the market, outweighing concerns stemming from the lack of progress in US-Iran peace negotiations. Japanese firms remain key participants in the global AI infrastructure expansion and are well positioned to benefit from the sector’s rapid growth. Leading technology gainers included Kioxia Holdings (+1.3%), Fujikura (+5.7%), Furukawa Electric (+3.8%), Tokyo Electron (+8%), and Advantest (+3.5%). Financial and consumer-oriented shares also posted solid gains. Meanwhile, investors continued to follow developments in US-Iran negotiations, as conflicting messages from both sides maintained a degree of geopolitical uncertainty in global markets.

The Nikkei 225 Index dropped 304 points or 0.45 percent on Tuesday to close at 66630 points. Losses were led by Nippon Electric Glass (-10.28%), Mitsui Mining & Smelting (-7.52%) and Yaskawa Electric (-7.32%). Offsetting the fall, top gainers were AGC (8.76%), GS Yuasa (6.87%) and Isetan Mitsukoshi (6.75%).

The Nikkei 225 Index fell 0.3% to close at 66,734, while the broader Topix Index lost 0.42% to 3,924 on Tuesday, as Japanese equities pulled back modestly from record highs amid ongoing geopolitical uncertainty. Reports indicated that Tehran had suspended talks with Washington in response to Israeli strikes in Lebanon, although President Donald Trump stated that negotiations remain underway. Domestically, markets are pricing in roughly a 78% probability that the Bank of Japan will raise interest rates again later this month as inflationary pressures linked to the Middle East conflict continue to build. Among individual stocks, notable decliners included Murata Manufacturing (-2.5%), Fujikura (-2.2%), Furukawa Electric (-2.3%), Mitsubishi Heavy Industries (-3.3%), and Toyota Motor (-2.1%). Meanwhile, SoftBank Group rose another 1.1%, extending gains after a technology-led rally on Wall Street sparked by the launch of a new PC chip.