Nikkei Surges Past 51,000 for the First Time on AI Investment Optimism
Japan’s Nikkei 225 index crossed the 51,000 mark for the first time on Wednesday, fueled by strong investor confidence in the artificial intelligence sector.
The tech-heavy Nikkei 225 jumped 2.2% to close at a record 51,307.65, while the broader Topix index slipped 0.2% as a stronger yen weighed on major exporters.
This marked the largest daily gap in performance between the two benchmarks since August 5, 2020.
Nikkei’s Rapid Climb Signals Market Confidence
The Nikkei first broke 45,000 on September 16 and has continued to surge through round-number milestones in recent weeks.
According to Masayuki Kubota, chief strategist at Rakuten Securities, the index could reach around 63,000 by 2030 as Japan shifts toward inflation, corporate reforms advance, and Prime Minister Sanae Takaichi pursues pro-growth economic policies.
“Although the pace is a bit fast, I believe this rally reflects the true value of Japanese shares,” Kubota said.
AI Investment Boom Drives Tokyo Stocks
Investors remain optimistic that the global AI investment boom will continue to support Japan’s stock market.
Advantest Corp, a leading chip-testing equipment maker, soared 22%, its biggest single-day gain ever, after raising its annual profit forecast by 25% amid surging demand from technology firms.
In the United States, all three major stock indexes hit new records on Tuesday after Nvidia announced plans to build AI supercomputers for the U.S. Energy Department, boosting sentiment across global tech markets.
Tech Giants Lead the Nikkei Rally
SoftBank Group, one of Japan’s top tech investors, rose 3.9%, making it the second-largest contributor to the Nikkei’s rise.
Lasertec, a semiconductor inspection systems manufacturer, also surged 7.7%, reflecting continued strength in the chip sector.
According to Nomura Securities strategist Wataru Akiyama, tech companies like Advantest and SoftBank are currently driving the market, but he cautioned that the rally’s momentum might slow once the initial AI wave fades.
By the close, 43 stocks advanced on the Nikkei, while 182 declined, highlighting selective buying concentrated in AI and semiconductor names.
