TOKYO - Tokyo stocks posted one of the strongest gains in the history of Japan's equity market on June 15, with the Nikkei Stock Average closing above 69,000 for the first time after a U.S.-Iran agreement aimed at ending hostilities eased concerns over energy prices and global economic risks.
The benchmark Nikkei rose 3,297.46 points, or nearly 5%, to close at a record 69,317.50, marking the second-largest point gain in its history. The index climbed more than 3,600 points at one stage during trading and briefly approached levels that brought the 70,000 milestone into view.
The rally began immediately after the opening bell, with investors responding to reports that the United States and Iran had reached a memorandum outlining steps toward ending the conflict between the two countries. The agreement boosted risk appetite globally and helped fuel broad-based buying across the Tokyo market.
The Nikkei quickly surpassed its previous intraday record of 68,786 set on June 3 before advancing into the 69,000 range for the first time.
A sharp decline in oil prices added momentum to the rally. In New York trading, West Texas Intermediate crude futures fell about 5% from the end of last week, briefly dropping to around 80 dollars per barrel before stabilizing in the low 80-dollar range. The decline eased concerns that prolonged Middle East tensions would drive up energy costs and damage corporate earnings.
As a result, buying spread well beyond technology shares. Construction companies and airlines, which had been viewed as vulnerable to higher fuel and operating costs, rose alongside exporters, manufacturers and financial stocks.
The advance was also supported by continued enthusiasm surrounding artificial intelligence-related investments, which have been a major driver of Japanese equities this year.
AI- and semiconductor-related stocks were among the market's strongest performers. Kioxia Holdings surged roughly 11%, while Tokyo Electron and Murata Manufacturing attracted heavy buying. Murata at one point reached its daily limit-up level after JPMorgan reportedly doubled its target price on the company from 7,000 yen to 15,200 yen, citing stronger-than-expected demand for ceramic capacitors used in AI servers.
Investors also poured money into other electronic component makers viewed as beneficiaries of AI infrastructure spending, including TDK and Taiyo Yuden.
Financial shares strengthened as well. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group both reached record highs as investors positioned for a possible Bank of Japan interest rate increase and responded to gains in U.S. banking stocks.
Market participation was exceptionally strong. Trading value on the Tokyo Stock Exchange Prime Market totaled approximately 10.29 trillion yen, while 1,119 stocks advanced compared with 414 decliners, meaning more than 70% of Prime Market listings finished higher.
The broader TOPIX index also reached a record high. Although it retreated from an intraday level above 4,000, it still finished more than 3% higher and surpassed its previous record set on June 3.
Investor interest extended beyond traditional market leaders. Analysts noted increased attention on World Cup-related stocks following Japan's 2-2 draw with the Netherlands, with some investors seeking exposure to companies expected to benefit from tournament-related spending and consumer activity. Nomura Securities has said such stocks have historically outperformed the broader market from shortly before the tournament begins through the first several weeks of competition.
A recent Nomura survey of 1,000 individual investors found that AI, semiconductor and financial shares remain the most popular investment themes across all age groups. Frequently cited names included Fujikura, JX Advanced Metals, Tokyo Electron, Kioxia, Mitsubishi UFJ and Sumitomo Mitsui.
Despite the market's powerful advance, analysts cautioned that uncertainty has not fully disappeared. Details of the U.S.-Iran settlement have yet to be finalized, and some investors warned that the latest rally may be vulnerable if negotiations encounter setbacks.
Still, the strength of the buying suggested that investors were responding not only to the easing of geopolitical tensions but also to broader momentum in Japanese equities, which have risen more than 30% this year. The combination of strong AI-related earnings expectations, falling oil prices, improving global risk sentiment and continued inflows into equities helped push Japanese stocks to new heights and brought the symbolic 70,000 level within striking distance.
Source: TBS
