Nikkei tops 60000 as AI stocks drive Asian market surge

Thursday 23 April 2026 - 07:50

By: Dakir Madiha

Nikkei tops 60000 as AI stocks drive Asian market surge

Japan’s Nikkei 225 index crossed the 60,000-point threshold for the first time in its history on Thursday, marking a major milestone after decades of market evolution. The benchmark briefly reached an intraday high of 60,013.98 points early in Tokyo trading before reversing course and slipping more than 1 percent by the end of the morning session. The surge was driven by a narrow group of technology stocks tied to artificial intelligence and semiconductors, underscoring the concentrated nature of the rally.

Shares in SoftBank Group jumped as much as 8.9 percent, reflecting investor enthusiasm for its expanding role in artificial intelligence investments. Semiconductor firms Advantest and Tokyo Electron also posted gains, rising 2.65 percent and 1.76 percent respectively. Despite the record level, market breadth remained limited, with the ratio between the Nikkei and the broader Topix index reaching an all-time high, signaling that gains were heavily focused on a small number of dominant stocks. The index has now recovered all losses recorded after the escalation of tensions between the United States and Iran earlier this year.

In South Korea, the KOSPI index also reached a historic milestone, opening above 6,500 points for the first time and extending its record run for a third consecutive session. The rally was supported by strong corporate earnings and robust economic data. SK Hynix reported record first-quarter results, with operating profit reaching 37,600 billion won on revenue of 52,600 billion won, delivering an operating margin of 72 percent. At the same time, South Korea’s economy expanded by 1.7 percent quarter-on-quarter in the first quarter of 2026, marking the fastest growth in more than five years and significantly exceeding expectations. Semiconductor exports, which rose 5.1 percent over the quarter, accounted for a large share of that expansion.

Investor sentiment across both markets initially improved after the United States announced an indefinite extension of a ceasefire with Iran, easing immediate geopolitical tensions. However, uncertainty quickly returned as broader instability in the Middle East continued to weigh on markets. Iran’s seizure of container ships in the Strait of Hormuz earlier in the week pushed Brent crude prices above 100 dollars per barrel, raising concerns about energy supply disruptions. These developments triggered renewed caution among investors, contributing to selling pressure that erased early gains in Tokyo.

The strong performance of both indices reflects a broader surge in demand for artificial intelligence infrastructure. High-bandwidth memory chips used in data centers have driven record earnings for semiconductor producers, while investment vehicles linked to AI continue to attract capital. South Korea’s KOSPI has gained more than 26 percent in April alone, making it the best-performing major stock index globally during that period. Still, the sharp intraday reversal in the Nikkei highlights the fragility of the rally, as geopolitical risks and energy market volatility remain key factors shaping investor behavior.