Japan’s Nikkei index closed Wednesday’s session at a record high level for the third session in a row, approaching the 70,000-point barrier, supported by a decline in geopolitical concerns and continued purchases in technology and artificial intelligence stocks, ahead of the US Federal Reserve’s monetary policy decision.
The Nikkei index rose by 0.7% to close at 69,902.25 points, after touching the level of 70,125.75 points during the session, while the broader Topix index rose by 0.6% to reach 4,013.23 points.
This performance comes in light of the progress of talks regarding a temporary agreement between the United States and Iran to end the conflict, as US President Donald Trump indicated that the agreement prevents Iran from possessing a nuclear weapon, while an American official stated that it will allow Tehran to export oil after its signing.
This contributed to a decline in oil prices, which enhanced risk appetite in global markets, in addition to continued momentum in technology stocks related to artificial intelligence.
Analysts said that the market benefited from the decline in geopolitical tensions, in addition to the continued strong demand for semiconductor stocks and industrial companies related to artificial intelligence, which supported the index’s upward trend.
Artificial intelligence stocks recorded a strong performance, as “Lazertec” stock jumped by 13.2% to close at a record level, “Murata Manufacturing” stock rose by 3.2%, while “Yaskawa Electric” stock rose by 2.9%.
On the other hand, some stocks declined, most notably “T&D Holdings” by 3.2%, “Soft Bank” by 3.1%, and “Olympus” by 3%.
The index briefly exceeded the 70,000-point barrier for the first time in Tuesday’s session, supported also by the Bank of Japan’s decision to raise interest rates to 1%, in a move that was widely expected.
Investors are currently awaiting the statements of the new Federal Reserve Chairman on inflation and the labor market, amid widespread expectations to keep interest rates unchanged.
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