(Update 2) Nikkei Tops 68,000 for 1st Time; Dollar Rises to 160 Yen

(The euro figures in the fourth paragraph from the end have been corrected. A substitute story follows.) (Update 2) Nikkei Tops 68,000 for 1st Time; Dollar Rises to 160 Yen Tokyo, June 3 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average surged to top 68,000 for the first time ever Wednesday, thanks to buying of issues related to artificial intelligence and semiconductors. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section closed at 68,402.13, up 1,667.89 points, or 2.49 pct, from Tuesday. The broader TOPIX index ended 71.96 points, or 1.83 pct, higher at 3,996.20, after briefly exceeding 4,000 for the first time. All major U.S. stock indexes rose Tuesday amid growing expectations for a further increase in AI demand reflecting strong earnings reports from major U.S. information technology firms. Following the U.S. market strength, buying took the upper hand from the outset of Tokyo stock trading Wednesday. The Nikkei maintained high levels despite upward pressure tapering off in the afternoon, with an official at a midsize securities firm explaining, “Although there is profit-taking, some investors are buying on dips, preventing the market from falling sharply.” “(Buying) remains concentrated on AI-related names,” such as Kioxia Holdings, an official at a bank-affiliated securities brokerage said. “(AI firms) have an easy-to-understand growth story and both their earnings and share prices are rising, making portfolio managers feel compelled to buy their stocks and making it easier for them to justify doing so.” In Tokyo currency trading Wednesday, the dollar climbed to 160 yen for the first time since April 30, when the Japanese government and the Bank of Japan are believed to have conducted a yen-buying, dollar-selling foreign exchange market intervention. At 5 p.m., the dollar stood at 159.70-71 yen, compared with 159.68-68 yen at the same time Tuesday. The euro was 1.1616-1616 dollars, down from 1.1649-1649 dollars, and at 185.49-52 yen, down from 186.01-02 yen. The dollar drew safe-haven buying amid uncertainty over the Middle East situation, market sources said. Concern over a prolonged conflict, spurred by a U.S. announcement that it had intercepted multiple ballistic missiles and drones launched by Iran toward neighboring countries, pushed the U.S. benchmark West Texas Intermediate crude oil futures contract above 95 dollars per barrel. The yen came under selling due to concern that Japan’s trade deficit would balloon due to its dependence on imported energy, the sources added. Japanese Finance Minister Satsuki Katayama issued a verbal warning against the yen’s depreciation Wednesday, saying, “We will act appropriately at any time as needed.” END [Copyright The Jiji Press, Ltd.]