Nikkei Hits Record Highs with Sharpest Weekly Gain Driven by AI

Japan's Nikkei index has achieved a historic milestone, recording its strongest weekly performance in nearly two years. Fueled by a massive rally in artificial intelligence (AI) and semiconductor-related stocks, the index reached consecutive record highs this week.

AI and Semiconductor Stocks Lead the Rally

The primary catalyst for the Nikkei's surge was the intense optimism surrounding AI-related sectors. The index posted a substantial 7.9% rise for the week, marking its sharpest weekly growth since August 2024. On Friday, while the index trimmed some early gains, it managed to close 0.28% higher at 71,250.06, after touching an intraday record high of 71,952.99.

Specific industry players drove much of this momentum. Chip-related stocks saw significant movement, with Advantest rising 4.75% and Kioxia jumping 12%. Furthermore, the demand for AI data center infrastructure provided a massive boost to material suppliers. Fujikura, a key player in fiber-optic cables, surged 15.69% to reach its daily limit high of 5,161 yen. This jump followed a significant upward revision in its annual net profit forecast to 229 billion yen ($1.42 billion), up from an initial guidance of 156 billion yen. Similarly, industry peer Furukawa Electric saw a 15% surge.

Geopolitical Uncertainties and Profit Booking

Despite the record-breaking weekly performance, the market faced volatility toward the end of the week due to geopolitical tensions in the Middle East. Uncertainty regarding potential peace talks between the U.S. and Iran weighed heavily on investor sentiment. Reports surfaced that U.S.-Iran negotiations in Switzerland would not take place as planned, following the cancellation of U.S. Vice President JD Vance’s travel to the country.

Daisuke Hashizume, senior strategist at Daiwa Securities, noted that while the market is eyeing a 60-day window to reach a final agreement to end the conflict, the sudden news regarding the stalled talks indicates a "tough road ahead." This geopolitical friction, combined with the U.S. market being closed on Friday, prompted many investors to engage in profit-booking to lock in gains from the recent rally before the weekend.

Divergence in Market Performance

De week onderstreepte een opvallende divergentie tussen de Nikkei en de bredere Topix-index. Terwijl de Nikkei zijn door AI gedreven hoogtepunten vierde, daalde de Topix met 0,57% naar 4.044,96. Deze neerwaartse druk op de bredere index werd grotendeels toegeschreven aan een terugval in de bankensector. Grote financiële instellingen, waaronder Mitsubishi UFJ Financial Group en Mizuho Financial Group, zagen dalingen van respectievelijk 2,85% en 4,42%, waardoor de Topix omlaag werd getrokken, zelfs terwijl tech-aandelen omhoog schoten.

Kernpunten

  • AI-gedreven groei: De Nikkei boekte een wekelijkse stijging van 7,9%, gevoed door enorme stijgingen in AI- en halfgeleideraandelen zoals Advantest, Kioxia en Fujikura.
  • Recordmijlpalen: De index bereikte deze week opeenvolgende recordhoogtes, met een intraday-piek van 71.952,99.
  • Geopolitieke tegenwind: Gestagneerde vredesbesprekingen tussen de VS en Iran, samen met winstnemingen voorafgaand aan de Amerikaanse feestdag, zorgden voor volatiliteit en temperden de winsten van vrijdag.