Japan's stock market set a new milestone by hitting a record high.
On the 27th, the Nikkei 225 average (Nikkei index) closed at 50,512, up 2.46% from the previous trading day, surpassing the 50,000 mark for the first time. It rose as high as 50,549 during intraday trading.
This rally was led by strength in artificial intelligence (AI) and semiconductor-related stocks. Advantest, SoftBank Group, and Fujikura all surged, driving the index higher.
In addition, defense stocks broadly gained after Prime Minister Sanae Takaichi pledged boosting national defense capabilities. Kawasaki Heavy Industries hit its highest price since its 1989 listing.
Nihon Keizai Shimbun analyzed that the rise was the result of a combination of factors: expectations for U.S. interest rate cuts, expansion of the AI industry, and optimism about the economic policy of the Takaichi Cabinet, "Sanaenomics," which has shown high approval ratings in the 60% to 70% range since its launch.
In addition, expectations that the Bank of Japan will hold off on raising rates at the monetary policy meeting to be held on the 29th to 30th spread, and the continued weakness of the yen also contributed to the rise in stock prices.
Easing U.S.-China trade tensions also improved investor sentiment. U.S. Treasury Secretary Scott Bessent said on the 26th (local time) that China's rare earth export controls appear likely to be postponed, and accordingly, the United States will not impose the additional 100% tariff on Chinese goods.
Nikkei also projected that the interim earnings announcements by major corporations such as Advantest, Tokyo Electron, and Hitachi will be a variable for this week's market trend.