Quick overview

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Japan’s Nikkei share average shot to a record high on Thursday, and the country’s bonds rallied as optimism over strong technology earnings and indications of a possible Middle East peace deal caught up. The benchmark Nikkei 225 Index broke through the 62,000 mark for the first time, rising 4.19 percent to 62,009.59. At 3,807.84, the overall Topix increased by 2.12 percent.

Japanese government bonds (JGBs) increased following a three-day trading halt during which the yen appreciated due to alleged intervention by Tokyo authorities. The yen was essentially stable at 156.33 per dollar a day after a surge to a 10-week high of 155, fueled by talk of additional official support.

Overnight, Wall Street indexes reached all-time highs as excitement over the rapidly expanding artificial intelligence industry was fueled by favorable results from Advanced Micro Devices.

President Donald Trump stated that the US has had excellent talks with Tehran, while Iran said it is examining a US proposal to end the more than two-month conflict. “The strong performance of chip shares, driven by Advanced Micro Devices’ strong forecast, led to today’s sharp gain of the Nikkei,” stated Takamasa Ikeda, senior portfolio manager at GCI Asset Management. The market anticipates that there won’t be any more military action, despite the thin content of the US-Iran peace proposals

The Nikkei index saw 78 decliners and 144 advancers. Tech sector suppliers saw the biggest percentage gains in the index, with Ibiden leading the way at 15.9 percent, followed by Mitsui Kinzoku Ltd. at 15.3 percent, and Renesas Electronics at 12.8 percent.

However, as energy prices increased and the yen depreciated, mining and exporter shares were generally lower, reversing gains made during the Iranian conflict. The leading oil and gas explorer in Japan, Inpex, fell 5.9%, while Honda Motor lost 0.7%. According to the Bank of Japan’s March minutes, made public on Thursday, many board members believed that if the energy shock caused by the Iran War persisted, interest rates would need to be raised.