TOKYO: Japan’s Nikkei 225 closed at a record 62,833.84 on Thursday, rising 5.58% after climbing above 62,000 for the first time and briefly crossing 63,000 intraday, as investors returned from a three-day holiday break to strong demand for technology stocks. The benchmark reached as high as 63,091.14 during the session. On the Tokyo Stock Exchange, the broader Topix index also advanced, ending 3.00% higher at 3,840.49 as gains spread across large parts of the market.
The rally followed a holiday closure from Monday through Wednesday during Japan’s Golden Week period and reflected a catch-up move after overseas equities rose earlier this week. Sentiment was also supported by strong earnings-driven momentum in global semiconductor shares after Advanced Micro Devices issued an upbeat forecast. Lower oil prices added to the favorable backdrop for stocks, helping Tokyo shares extend a tech-led advance that pushed the Nikkei 225 to fresh highs from the opening minutes.
Market breadth was firmly positive, with 174 advancers against 49 decliners on the Nikkei 225. Technology suppliers led the move, with Ibiden jumping 22.4%, Sumco rising 19.7% and Kioxia gaining 19.2%. Some energy and export-linked stocks lagged, however, as the day’s shift in market leadership pulled money toward chip-related names. Inpex fell 6.5%, making it the benchmark’s weakest performer, while Honda Motor slipped 0.24% amid continued pressure on parts of the export sector.
Tech shares power record close
Thursday’s surge marked the Nikkei’s largest percentage gain in more than a year and reinforced the outsized influence of semiconductor names on Japanese equities. The Nikkei 225, which tracks 225 selected shares listed on the Tokyo Stock Exchange, had already opened sharply higher before extending gains through the afternoon session. The broader Topix also posted a strong advance, indicating the rally was not limited to a handful of large-cap stocks even as chip-related companies accounted for some of the day’s biggest moves.
Japanese government bonds also rallied as investors responded to a firmer yen and easing inflation concerns. The benchmark 10-year Japanese government bond yield fell 2.5 basis points to 2.475%, while the two-year yield, which is more sensitive to monetary policy expectations, declined 1.5 basis points to 1.365%. In currency trading, the yen was around 156.375 per dollar after strengthening sharply the previous day and touching a 10-week high near 155, adding another supportive element for domestic financial markets.
BOJ minutes and yen shape session
Minutes from the Bank of Japan’s March policy meeting, released on Thursday, showed that many board members saw a need to raise interest rates if energy-driven inflation were to persist. Even so, a stronger yen and stabilizing oil prices during Japan’s market holidays helped ease immediate inflation worries, supporting bond prices as trading resumed. That combination left investors balancing resilient equity demand, firmer currency conditions and a bond market that reflected reduced concern over near-term price pressures.
The Nikkei’s move above 62,000 was the first of its kind, but the session ended with an even stronger milestone as the index also recorded its first intraday break above 63,000 and its highest close on record. With Advanced Micro Devices again helping drive global chip sentiment, the gains in Tokyo highlighted how closely Japanese technology shares are tracking developments in the wider semiconductor cycle. The record finish left the Tokyo Stock Exchange at the center of one of Asia’s strongest equity advances this week. – By Content Syndication Services.