Nikkei Nears Record as Kioxia, Tokyo Electron Rally

The Nikkei 225 rose 5% to 71,950 on Wednesday, finishing a few points short of its all-time high of 72,781 after gains in memory and semiconductor-related stocks.

Kioxia led the advance, up about 8%, lifting its market value above $312 billion and momentarily making it the largest company listed in Japan by market capitalization, ahead of SoftBank at about $230 billion. Tokyo Electron gained roughly 8.2%, sending its market cap past $205 billion. Semiconductor tester Advantest climbed about 12.7% to near $135 billion. SoftBank rose about 2% on the day.

The stock moves followed corporate developments in the memory sector. SK Hynix announced plans for a U.S. listing and said it would raise $30 billion to expand operations in South Korea. Micron reported quarterly revenue of $41.46 billion and net income of $28.24 billion for the period disclosed by the company.

Energy markets weighed on sentiment. Brent crude fell to about $72.90 a barrel, its weakest level since late February, while West Texas Intermediate slipped toward $69. Shipping activity through the Strait of Hormuz increased during the period.

Currency markets were a factor for exporters. The dollar traded near 161.72 yen, about 12% stronger versus the yen over the past year. A weaker yen raises the yen value of overseas sales when converted back into domestic currency, which can lift reported profits for exporters.

On technical charts, the Nikkei moved above several key moving averages. Indicators including the Relative Strength Index and the MACD were higher, and the index formed a morning star candlestick pattern on the daily chart.

Trading was concentrated in electronics and chip-related suppliers, reflecting demand for memory chips, foundry equipment and semiconductor test gear linked to artificial intelligence spending. Tokyo Electron counts major memory producers among its clients, and advances in testing and memory supply chains underpinned sector gains.

No official comments from company executives were released during the trading day. Analysts and portfolio managers tracking Japan’s market activity cited strong industry earnings, large capital plans from key suppliers and weaker crude and yen levels as factors behind the rally.

The Nikkei has risen about 87% over the past 12 months and roughly 40% so far this calendar year, driven in part by renewed investor interest in technology and semiconductor shares tied to AI-related demand.