Nikkei Closes above 72,000 for 1st Time

Tokyo, June 22 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average closed above 72,000 for the first time Monday, extending a record-breaking run to a sixth consecutive session. The index of 225 selected issues on the Tokyo Stock Exchange’s top-tier Prime section rose 1,103.90 points, or 1.54 pct, from Friday to end at 72,353.96. The broader TOPIX index climbed 50.09 points, or 1.24 pct, to 4,095.05, also a fresh record closing high. The Nikkei briefly gained over 1,500 points on the back of continued buying of semiconductor- and artificial intelligence-related issues, before giving up some of the gains later due to selling to lock in profits. The future of U.S.-Iranian talks to end their conflict remains uncertain. Qatar and Pakistan, which are mediating the talks, confirmed their intention to continue discussions, stating, however, that the United States and Iran had agreed on a roadmap for a final agreement within 60 days. “Investors’ sentiment was buoyed by hopes for normalized navigation in the Strait of Hormuz,” an official of a Japanese securities firm said. Buying momentum for AI-related stocks, such as shares related to semiconductor manufacturing equipment and electronic materials, remained strong, pushing up the Nikkei index. Industrial machinery-related stocks also rose sharply Monday as physical AI for autonomous control of robots is expected to be a priority investment target in the new growth strategy to be formulated by the government this summer. Meanwhile, the dollar rose above 161.50 yen in Tokyo trading Monday. Expectations for an interest rate hike by the U.S. Federal Reserve within the year are rising due to the solid U.S. economy and inflationary pressures. Yen selling continued on the view that the interest rate gap between Japan and the United States will not narrow. As at 5 p.m., the dollar stood at 161.72-73 yen, up from 161.32-32 at 5 p.m. Friday. END [Copyright The Jiji Press, Ltd.]