The Nikkei 225 Index Closes 1.24% Higher

The Nikkei 225 Index rose 841 points or 1.24 percent on Wednesday to close at 68585 points. Leading the gains are Lasertec Corp (9.78%), Taiyo Yuden (7.21%) and Furukawa Electric (7.10%).

The Nikkei 225 Index climbed 1.49% to close at 68,751, while the broader Topix Index advanced 1.22% to 4,088 on Wednesday, extending gains from the previous session as Japanese equities tracked Wall Street higher after softer-than-expected US inflation data reduced expectations of a near-term Federal Reserve interest rate hike. Investors also looked past escalating geopolitical tensions in the Middle East after the US launched another round of strikes against Iran while reinstating its naval blockade of Iranian ports near the Strait of Hormuz. On the domestic front, data showed Japan’s machinery orders fell more than expected in May, reflecting broad-based weakness in business investment. Technology and AI-related stocks led the advance, with Kioxia Holdings surging 5.6%, Advantest rising 5.6%, Tokyo Electron gaining 4.7%, Taiyo Yuden adding 6.5%, and Lasertec jumping 10%.

The Nikkei 225 Index rose 0.74% to close at 67,743 on Tuesday, reversing earlier losses as semiconductor and other technology stocks rebounded on bargain hunting. Japanese equities also diverged from the tech-led selloff on Wall Street overnight, where chipmakers came under pressure amid growing concerns over the sustainability of the artificial intelligence trade. Leading technology gainers in Japan included Kioxia Holdings (3%), SoftBank Group (3.3%), Advantest (3.3%), SUMCO Corp (3.4%), and SCREEN Holdings (2.3%). Meanwhile, investors continued to monitor escalating tensions in the Middle East after President Donald Trump announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz. The announcement drove oil prices sharply higher and revived concerns that central banks may need to raise interest rates to contain inflation.