Gotrade News – Japan’s Nikkei Stock Average broke above the 60,000 yen level for the first time in history on Wednesday. This milestone was driven by concentrated gains in artificial intelligence and semiconductor stocks.
Important points
- The Nikkei Stock Average hit an all-time high of 60,013.98 sen, surpassing the 60,000 yen milestone for the first time.
- The margin of increase was very narrow, with only 17% of the 1,600 stocks on the TSE prime market increasing in price, and 78% declining.
- SK Hynix posted record revenue in Q1 2026 as HBM chip prices soared more than 40% year-on-year
The Nikkei Stock Average peaked at 60,013.98 and closed almost flat after early volatility. The index fell by as much as 0.7% before recovering, while TOPIX stabilized at 3,744.93.
Early sentiment rose after President Trump extended the Iran ceasefire agreement indefinitely. However, it was a close rally, with the NT ratio hitting a record high of 15.74.
Semiconductor stocks led the rise, with Advantest up 2.65% and Tokyo Electron up 1.76%. SoftBank Group posted the biggest increase at 6.4%, reflecting investors’ strong optimism about AI investments.
On the other hand, Fast Retailing (Uniqlo) fell 1.8% and was the biggest drag on the index. An astonishing 78% of TSE Prime Market stocks actually fell on the same day the index hit an all-time high.
This narrowness suggests that the Japanese market is driven by bets on the AI theme rather than broader economic forces. Investors should exercise caution as the rise in the index does not reflect the overall health of the market.
Behind the rise in Japanese semiconductor stocks is a fundamental catalyst from the global AI memory sector. SK Hynix posted record numbers in the first quarter of 2026 as prices for high-bandwidth memory soared more than 40% year-on-year.
SK Hynix’s HBM3E chips are sold out until at least the third quarter of 2026. The company’s main customer is Nvidia, which uses these chips in its H100 GPU and Blackwell architecture.
The HBM market has shifted from price competition to allocation competition among buyers. SK Hynix has committed more than $20 billion in capital investment to expand HBM’s production capacity.
Samsung is rushing to catch up with its new HBM manufacturing facility, which is expected to come online by the end of 2026. Micron is still several months behind in HBM technology, giving Korean manufacturers a significant competitive edge.
South Korea’s focus on HBM manufacturing gives it tremendous strategic influence over the global AI supply chain. Indonesia’s successful sale of 172.1 billion yen of Samurai bonds further underlines widespread confidence across Asian markets.
The Nikkei Stock Average reaching 60,000 yen means it has fully recovered its losses since the US-Iran conflict in late February. However, the narrow participation rate is a cautionary tale for investors considering entry at current levels.
