Japan's Nikkei Index Tops 60,000 for the First Time Ever on AI and Semiconductor Buying

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[Financial News, Tokyo = Reporter Seo Hye-jin] Japan's benchmark Nikkei Stock Average (Nikkei 225) rose above 60,000 during intraday trading for the first time ever on the 23rd.
As of 10:07 a.m. that day, the Nikkei Stock Average (Nikkei 225) was up 0.41% from the previous session at 59,842. At one point, it climbed to 60,013, breaking above the 60,000 mark for the first time.
\r\nNihon Keizai Shimbun reported that the index was lifted by the previous day's gains in U.S. stocks and by buying in AI and semiconductor-related shares.
\r\nOn the 22nd local time, the S&P 500 Index closed at 7,137.90, up 1.05% from the previous session, setting a new all-time high. The NASDAQ Composite Index, which is centered on technology stocks, also hit a record, rising 1.64% to 24,657.57. The Dow Jones Industrial Average (DJIA) finished the day at 49,490.03, up 0.69%. The Philadelphia Semiconductor Index (SOX), made up of major semiconductor-related stocks, extended its gains for a 16th straight session. The rally was driven by expectations that the ceasefire between the United States of America and the Islamic Republic of Iran (IRI) would be extended.
Buying is also concentrated in semiconductor-related stocks in Tokyo trading on the day. Advantest Corporation and Tokyo Electron Ltd. are both trading higher, while SoftBank Group Corp., which owns British chip designer Arm Holdings plc, is also rising sharply.
\r\nThe Nikkei Stock Average (Nikkei 225) had been weak since the end of February, after the United States of America and Israel attacked Iran, and it fell to the 51,000 range by the end of last month. So far this month, however, it has turned higher, led by AI and semiconductor-related stocks with strong growth expectations, as hopes have grown that tensions in the Middle East will ease.
Still, many are warning that the sharp rally of more than 8,000 points from the end of last month may be overheating in the short term. Even on this day, after the Nikkei Stock Average (Nikkei 225) reached the 60,000 level, profit-taking briefly pushed it back into negative territory.
Concerns also remain that buying is concentrated in a limited number of stocks. Daiki Takei, strategist at Resona Holdings, Inc., said, "Whether the range of stocks attracting buying will broaden as earnings reports from March-year-end companies begin in earnest will be the key to sustaining the stock price rally."
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sjmary@fnnews.com Seo Hye-jin Reporter