Nikkei Hits Record High as Tech Stocks Rally and Yen Weakens
Japan’s Nikkei share average surged to a historic record high on Friday, marking its biggest monthly gain in more than 30 years. The strong rally was fueled by powerful gains in tech stocks following upbeat sales forecasts from both Amazon and Apple.
Weaker Yen Boosts Japan’s Exporters
A weaker yen also lifted heavyweight exporters, after the currency fell to a record low against the euro and its lowest level since February versus the U.S. dollar. The decline followed cautious remarks from the Bank of Japan Governor, who kept interest rates steady and maintained a conservative policy outlook.
The Nikkei 225 closed 2.1% higher at 52,411.34 — a record peak that capped an impressive 16.6% gain for October, its strongest monthly performance since January 1994. The broader Topix index also reached an all-time high, climbing 1.4% to 3,348.06 before finishing 0.9% higher at 3,331.83.
Global Tech Optimism Lifts Japanese Stocks
The global technology rally accelerated after Amazon reported its fastest cloud revenue growth in nearly three years, helping it project sales above market expectations. Meanwhile, Apple CEO Tim Cook predicted stronger holiday-quarter iPhone sales and overall revenue, surpassing Wall Street forecasts.
Japanese chipmakers and AI-related shares were among the biggest winners. Socionext surged nearly 17%, while Advantest climbed 3.9%, becoming the top contributor to the Nikkei’s index gains thanks to its heavy weighting. Hitachi jumped 7.2% as investors piled into AI data center–linked stocks.
Tech and AI Drive Japan’s Market Momentum
Tech stocks have been at the core of the Nikkei’s relentless rise in recent months, mirroring a global equity rebound powered by optimism around artificial intelligence.
Japan’s market has also enjoyed a domestic boost from expectations of fiscal stimulus under new Prime Minister Sanae Takaichi, who has prioritized innovation and AI development as part of her economic strategy.
According to MUFG Asset Management, this focus on AI means Japanese tech shares stand to benefit from both global and local momentum. Chief Market Economist Naoya Oshikubo said topping the 52,000 level “is just a step on the way higher,” projecting another possible 10% rise by April — adding that “this is not a bubble.”
