Nikkei Ends at Record High Above 62,000, Logging Highest Single-Day Point Gain

The Nikkei stock index ended at a new record high above the 62,000 line on Thursday, posting its largest-ever single-day point gain of more than 3,300, as hopes for a peace deal between the United States and Iran, along with buying of heavyweight technology shares, lifted the broader market.

“Efforts by the United States and Iran to reach a compromise to end the war appeared to gain momentum on Wednesday,” Maki Sawada said, referring to news reports on positive developments in the Middle East conflict.

The 225-issue Nikkei Stock Average rose 3,320.72 points, or 5.58 percent, from Friday to 62,833.84, eclipsing its largest point gain posted in August 2024. The broader Topix index finished 111.76 points, or 3.00 percent, higher at 3,840.49.

Following a long public holiday period in Japan -- with markets closed from Monday through Wednesday -- Tokyo stocks were underpinned by a report from U.S. online news site Axios that the United States and Iran are working on a memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, dealers said.A rise in heavyweight technology shares also lifted the market, driven by gains on the U.S. tech-heavy Nasdaq index, which closed at a record high Wednesday following favorable earnings results.

The Nikkei extended gains in the afternoon, hitting a fresh intraday record high of 63,091.14 and topping the 63,000 line for the first time, as artificial intelligence and semiconductor-related shares remained firm.

“Some investors may have been forced to resort to buybacks to adjust their timid positions or felt compelled to buy for fear of missing out on the rally,” said Shota Sando, equity market analyst at Tokai Tokyo Intelligence Laboratory Co.

On the top-tier Prime Market, the main gainers were nonferrous metal, metal product and information and communication issues.

On the currency market, the U.S. dollar mostly traded in the lower 156 yen range in Tokyo, amid wariness over possible market intervention by Japanese authorities following recent sharp rises in the yen during the holiday period.

At 5 p.m., the dollar fetched 156.26-28 yen compared with 156.27-37 yen in New York at 5 p.m. Wednesday.

The euro was quoted at $1.1766-1767 and 183.86-90 yen against $1.1743-1753 and 183.62-72 yen in New York late Wednesday afternoon.

The yield on the benchmark 10-year Japanese government bond ended down 0.025 percentage point from Friday’s close to 2.475 percent, after the debt was bought as concerns over inflation eased following hopes for an agreement between the United States and Iran to end the war.