TOKYO, May 25 (News On Japan) –
Japan’s benchmark stock index closed above the 65,000 degree for the primary time on May twenty fifth, as optimism over easing tensions within the Middle East and continued enthusiasm for AI-related shares pushed the market to a different document excessive.
The Nikkei Stock Average ended the day at 65,158, up 1,819 yen from final Friday, marking a brand new all-time closing excessive. Investors accelerated purchases of AI- and semiconductor-related shares after progress in negotiations geared toward ending combating between the United States and Iran raised hopes that delivery by the Strait of Hormuz would normalize.
The rally adopted document highs on Wall Street late final week, whereas declines in U.S. crude oil futures and decrease rates of interest additionally supported investor sentiment.
The Nikkei superior for a 3rd straight session, briefly gaining greater than 2,000 yen throughout buying and selling. The broader TOPIX index additionally rose for a 3rd consecutive day and surpassed its earlier document excessive set in February, whereas the TSE Growth Market 250 Index climbed 1.7%.
Market members mentioned the pace of the rally had exceeded expectations, with beneficial properties concentrated in a comparatively small group of closely weighted “Nikkei-type” shares that strongly affect the benchmark index.
Among the standout performers was Kioxia Holdings, whose shares rose above 60,000 yen for the primary time and reached one other document excessive forward of its investor day scheduled for June 2nd. Investors are carefully watching whether or not the corporate will announce stronger shareholder return measures, together with dividends.
ComfortableBank Group additionally hit its highest degree in seven months, supported by expectations surrounding OpenAI and rising valuations for chip designer Arm Holdings.
Other main gainers included Advantest, Tokyo Electron, TDK, and Taiyo Yuden, with Taiyo Yuden surging to its each day restrict amid expectations for increased costs for multilayer ceramic capacitors (MLCCs) utilized in AI servers.
Analysts famous that regardless of the sharp rise within the Nikkei, declining shares nonetheless outnumbered advancing ones on the Tokyo Stock Exchange Prime Market, highlighting how concentrated the shopping for exercise had grow to be.
Attention additionally centered on a pointy rise in market volatility, with the Nikkei Volatility Index climbing to round 33 whilst stock costs surged. Market observers mentioned this mirrored aggressive demand for name choices as buyers rushed to regulate positions after underestimating how shortly the Nikkei may strategy the 65,000 and even 70,000 ranges.
Foreign buyers continued to dominate shopping for exercise. Analysts cited suggestions from the Morgan Stanley MUFG Pan Summit 2026, the place abroad buyers reportedly expressed sturdy confidence in Japanese equities and the sturdiness of the AI-driven rally.
Some abroad buyers had been additionally mentioned to be more and more bullish on Japanese financial institution shares, significantly if the Bank of Japan continues elevating rates of interest towards 2%.
Trading worth on the TSE Prime Market remained elevated at roughly 9 trillion yen. Although 870 shares declined versus 664 gainers, heavyweight semiconductor and electronics shares continued to push each the Nikkei and TOPIX to recent information.
Taiwan’s stock market additionally hit a brand new excessive on May twenty fifth, gaining greater than 3%, whereas U.S. stock futures remained agency.