Japan's Tokyo stock market benchmark, the Nikkei 225 average (Nikkei index), broke through the 68,000 level for the first time ever, powered by gains in semiconductor-related stocks.
On the 3rd, the Nikkei index closed at 68,402.13, up 1,667.89 points (2.5%) from the previous day, a record high. The Tokyo Stock Exchange's market capitalization-based broad index, the Tokyo Stock Price Index (TOPIX), which reflects the entire market, also hit a record high at 3,996.20, up 71.96 points (1.83%) from the previous session.
AI and semiconductor-related issues led Tokyo stocks that day. Shares of NAND flash maker Kioxia Holdings climbed as much as 7% from the previous day to 83,140 yen before closing at 78,080 yen. In the process, it briefly rose to No. 2 by market capitalization, overtaking Toyota Motor. Toyota shares ended the session up 1.30% from the previous day at 2,881 yen, holding on to the No. 2 spot by market cap.
Nihon Keizai Shimbun (Nikkei) analyzed that comments at Kioxia's investor briefing the previous day about considering the introduction of progressive dividends to maintain or increase dividends and a share buyback lifted the stock. Kioxia said long-term contracts with corporations demanding NAND flash are increasing and noted that the recent expansion in results is not temporary.
Meanwhile, Tokyo stocks have recently seen concentration in AI-related issues such as SoftBank Group. The market capitalization of Murata Manufacturing, a corporations producing multilayer ceramic capacitors (MLCC) for AI data centers, briefly topped 20 trillion yen (about 190 trillion won) in the morning.
Meanwhile, in Tokyo's foreign exchange market that day, the yen weakened, at one point reaching 160 per dollar before easing slightly to the upper 159s. It was the first time since Apr. 30 that the yen-dollar rate hit the 160s.