Nikkei share average
topped 67,000 for the first time on Monday, powered by
AI-related shares, as startup investor SoftBank Group overtook
Toyota Motor to become the country’s most valuable company.
The Nikkei climbed 1.1 per cent to enter the midday recess
at 67,038.24, after pushing as high as 67,231.28.
SoftBank was by far the biggest support for the
index, jumping 10.3 per cent to contribute 618 points of the Nikkei’s
total 709-point rise.
The company’s market capitalisation swelled to around 47.2
trillion yen ($296.0 billion), while Toyota’s shrank to
around 45.7 trillion yen after the stock slid 4.8% on Monday.
Over the weekend, SoftBank pledged some 75 billion euros
($87.3 billion) over five years to build up AI infrastructure in
France.
The split between tech shares and the rest of the market was
clear from the performance of the broader Topix, which
sagged 0.2%.
Both the Nikkei and Topix had notched all-time highs on
Friday on optimism over a near-term peace deal in the Middle
East, but the fresh week began with Washington and Tehran still
appearing to differ on significant issues.
“Given the current expectations for expanding demand for AI
servers, buying interest is spreading to AI-related stocks that
had been lagging behind,” such as electronic component maker
Murata Manufacturing, said Maki Sawada, a strategist at
Nomura Securities.
Shares of Murata surged 14.1 per cent to be the Nikkei’s biggest
percentage risers.
At the same time, “we’re in a situation where concerns about
overvaluation are deep-rooted,” particularly with uncertainty
around the Middle East still high, she said.
Among the Tokyo Stock Exchange’s 33 industry groups, eight
rose, led by a 4.3 per cent jump in IT firms. Auto shares
were among the worst performers, down 4.2 per cent.
Even in the Nikkei, only 73 of its 225 components rose,
versus 152 that fell.
Not all chip-related shares advanced, with Advantest
retreating 2.2 per cent and Fujikura down 3.6 per cent.
Mitsubishi Motors was the biggest percentage
decliner, tumbling 9.1 per cent. Alliance partner Nissan was
another standout loser, declining 7.2 per cent.