Japan’s benchmark stock index surged to a record high on Thursday, with the Nikkei 225 crossing the 62,000-point mark for the first time as investors returned from a market holiday to a wave of optimism surrounding global technology earnings and artificial intelligence-driven growth.
The Nikkei 225 climbed 4.19 percent to close at 62,009.59 points, while the broader TOPIX gained 2.12 percent to 3,807.84 points.
The rally reflects growing investor confidence in technology and semiconductor-related companies as demand linked to AI infrastructure continues to accelerate globally. Strong earnings from major U.S. technology firms and chipmakers have helped fuel momentum across Asian equity markets in recent sessions.
Japanese stocks also benefited from broader regional optimism after South Korea and Taiwan markets reached fresh highs earlier this week amid continued enthusiasm around semiconductor and memory-chip producers.
The gains come as investors increasingly position around companies expected to benefit from rising global spending on AI systems, cloud computing, and data centre infrastructure.
At the same time, Japanese government bonds strengthened after markets reopened following a three-day holiday period. During the break, the Japanese yen posted sharp gains against the U.S. dollar, prompting renewed speculation that Tokyo authorities may have intervened in currency markets to support the battered currency.
The yen traded near 156.33 per dollar on Thursday after briefly strengthening to 155 in the previous session, its strongest level in around 10 weeks.
Japanese authorities have repeatedly warned against excessive volatility in currency markets, particularly as a weaker yen continues to raise import costs and inflation pressures domestically.
Market participants remain closely focused on potential intervention signals from the Ministry of Finance and the Bank of Japan, especially as rising U.S. Treasury yields and elevated oil prices continue to pressure the Japanese currency.
The Nikkei’s historic rise further underscores Japan’s resurgence as one of the world’s strongest-performing equity markets, supported by corporate reforms, improving shareholder returns, foreign investor inflows, and renewed momentum in the technology sector.
The latest gains also reflect the increasing global concentration of investor capital into AI-linked trades, which continue to dominate market sentiment across both Wall Street and Asia.
Despite the strong rally, analysts continue to monitor risks tied to currency volatility, geopolitical tensions, and the sustainability of elevated technology valuations globally.
With inputs from WAM
