Japan’s Nikkei rises past 72,000 mark for first time as AI euphoria persists
The broader Topix gains 1.1% to 4,089.59
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[TOKYO] Japan’s Nikkei share gauge surged past the 72,000 mark for the first time on Monday (Jun 22) as euphoria over AI investment outweighed uncertainty over US-Iran peace talks.
The benchmark Nikkei 225 advanced 1.4 per cent to 72,247.21 in early trading after touching a record intraday high of 72,269.64. The broader Topix gained 1.1 per cent to 4,089.59.
The government of Japanese Prime Minister Sanae Takaichi plans to set a target of about 370 trillion yen (S$3 trillion) in public and private investment in strategic sectors including AI and chips by 2040, the Nikkei reported on Friday.
Shares extended gains after Qatar and Pakistan, mediators to peace talks between the US and Iran, said that progress had been made and negotiations would continue following a tense opening.
“AI-related companies are once again playing a leading role in driving the market,” said Wataru Akiyama, an equities strategist at Nomura Securities. “A high level of vigilance regarding developments in the situation in Iran and the Middle East is likely to persist.”
Non-ferrous metals led Topix sector gains, up 7.57 per cent, followed by electric appliances and glass & ceramics products, which rose 2.08 per cent and 2.05 per cent, respectively. Real estate shares were among the laggards, down 1.07 per cent.
There were 146 advancers in the Nikkei 225 against 75 decliners and three unchanged.
J Front Retailing led gainers with a 16.24 per cent surge after activist investor 3D Investment Partners said it took a 5.10 per cent stake in the department store operator.
It was followed by Yaskawa Electric, trading up 9.02 per cent, and robot maker Fanuc, which gained 8.10 per cent.
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The largest losers were Taiyo Yuden, down 3.37 per cent, followed by Tokyo Electric Power, 3.05 per cent lower, and Obayashi, which lost 2.99 per cent. REUTERS
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