On the morning of the 25th, Japan’s leading stock index, the Nikkei 225 Average Stock Price (Nikkei Index), surpassed 65,000 at one point, setting a new intraday high. It seems that the positive trend seen in semiconductor-related stocks in the U.S. market over the weekend continued in the Tokyo stock market.
As of 10 a.m. on this day, the Nikkei Index is trading at 65,088.19, up 2.76% from the previous day’s close, quickly reaching the 65,000 range after breaking through the 64,000 barrier.
According to Nihon Keizai Shimbun (Nikkei), the rise in the Nikkei Index was attributed to the expectation of an impending peace agreement between the U.S. and Iran, as well as the rise of the major three indices in the U.S. stock market on the 22nd (local time). Amid expectations of an agreement, the July delivery of West Texas Intermediate (WTI) crude oil futures, a benchmark for oil prices, fell more than 5% to $91 per barrel in trading that started on the afternoon of the 24th.
In the Tokyo stock market, semiconductor-related stocks such as semiconductor manufacturing equipment companies Advantest and Tokyo Electron, and Kioxia, a representative Japanese semiconductor company, are leading the upward trend. The Nikkei reported that SoftBank Group also hit its highest price since going public.
A market official explained on NHK broadcasting, “The upward trend in U.S. market stock prices over the weekend has expanded, focusing on high-tech-related stocks.” However, the official noted, “The direction of negotiations surrounding the situation in Iran remains uncertain, and there are concerns about overheating due to the recent rapid increase in the Tokyo market, which could strengthen profit-taking movements.”
A large brokerage analyst told Asahi Shimbun, “The market risk sentiment has greatly improved with the upward trend in the U.S. market over the weekend and expectations that agreements such as the extension of the ceasefire between the U.S. and Iran are imminent.” However, they also pointed out, “About half of the stocks on the Tokyo Stock Exchange are declining overall, and there’s a possibility that the upward trend may calm down as a psychological milestone has been reached.”