Japan's Nikkei Surges 5.5% To All-time High On Strong Tech Earnings, Oil Relief

Japan's benchmark Nikkei 225 surged past the 63,000 mark for the first time on Thursday, leading a broad rally across Asian markets as investors cheered strong global technology earnings, easing geopolitical tensions in West Asia and a rebound in the yen.

The Nikkei 225 posted a record single-day gain of more than 3,300 points, closing at 62,833.84, up 5.57%, after briefly crossing the 63,000 level during intraday trade.

Japan's broader TOPIX index also gained 3% to close at 3,840.49.

The sharp rally came as Tokyo markets reopened after a five-day holiday break, allowing investors to catch up with gains seen in global equities earlier this week.

Tech Stocks Lead Rally

Technology and semiconductor-related shares led the gains following strong earnings from US chipmakers.

Shares of Advanced Micro Devices rallied overnight in the US, boosting sentiment across Asian tech counters. In Japan, semiconductor-linked companies such as Renesas Electronics and Ibiden emerged among the top performers.

Memory chipmaker Kioxia was also set to hit its daily upper circuit limit amid strong buying interest.

Analysts said investors were reacting not just to gains in the "Magnificent Seven" US technology stocks, but to broader earnings strength across sectors.

Iran Deal Hopes Boost Global Sentiment

Investor confidence also improved after reports suggested the United States and Iran were nearing a framework agreement that could help ease tensions around the Strait of Hormuz.

A decline in crude oil prices further supported market sentiment by reducing fears of supply disruption and imported inflation. While broader markets rallied, some oil-linked shares came under pressure following the fall in crude prices.

US equities had hit fresh highs overnight after reports that Washington was preparing a memorandum of understanding aimed at gradually reopening the Strait of Hormuz and easing maritime restrictions.

Yen Recovery in Focus

The Japanese yen also strengthened sharply on Wednesday, rising from around 157.8 per dollar to near 155 in a short span during thin holiday trading.

The move fuelled speculation of possible intervention or coordinated action by Japanese authorities to stabilise the currency after prolonged weakness raised concerns over imported inflation and market volatility.

According to Nikkei newspaper report, US Treasury Secretary Scott Bessent is expected to visit Japan next week for discussions with Prime Minister Sanae Takaichi, Finance Minister Satsuki Katayama and Kazuo Ueda.

The talks are expected to cover currency market coordination, speculative yen selling, energy security and broader geopolitical risks linked to the Iran conflict.