Nikkei Average Ends at Record High

Tokyo, June 25 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average soared to end at a new record high Thursday, powered by buying of artificial intelligence- and semiconductor-related stocks. The index of 225 major issues on the Tokyo Stock Exchange’s top-tier Prime section closed at 72,366.34, up 3,191.37 points, or 4.61 pct, from Wednesday. It was the fourth-biggest daily point gain for the Nikkei average. AI and chip issues, such as Kioxia Holdings, attracted purchases on the TSE after U.S. memory chip maker Micron Technology jumped in U.S. off-hours trading following its release of stronger-than-expected earnings forecasts for June-August on Wednesday. Falling crude oil prices, along with subsequent drops in U.S. and Japanese interest rates, also helped the Nikkei index rise. The oil price drop “helps ease downward pressure on the earnings of companies other than semiconductor businesses,” a major securities house official said. Meanwhile, software companies were sold due to concerns that AI services will replace traditional software products and businesses. On the Prime section, about 67 pct of the listed companies rose while 30 pct fell. The section’s trading value fell nearly 13 pct to 10.9 trillion yen. Of the total value, trading in Kioxia alone accounted for almost 30 pct, showing that investor money keeps concentrating on AI-related names. A major brokerage official said that Thursday’s buying was not widespread. END [Copyright The Jiji Press, Ltd.]