Nikkei Average Hits Record at 63,339 on AI Gains, Ceasefire Hopes

2026-05-22

Nikkei Average Hits Record at 63,339.07

The Nikkei Stock Average extended gains on the 22nd, closing up 1,654.93 points from the previous day at 63,339.07. The index rose 2.68% to a record closing high, with buying continuing mainly in artificial intelligence-related shares, helped by expectations of an end to fighting between the US and Iran and by gains in US technology stocks.

Breaks 63,000 in Morning Trade

The Tokyo market opened by taking its cue from the previous day's rally in US stocks. The Dow Jones Industrial Average hit a three-month high on the 21st, and investor risk appetite strengthened after reports said the US and Iran had drawn up a final draft of an agreement aimed at ending the fighting, mediated by Pakistan. The Nikkei widened its gains soon after the open and moved above 63,000 in the morning around 10 a.m.

SoftBank Group Bought on AI Theme

AI and semiconductor-related stocks led the market. SoftBank Group (SBG), which was bought up to the daily limit in the previous session, rose another 11.88% and at one point came within several tens of yen of its split-adjusted all-time high of 6,923.80 yen set in October 2025. The Wall Street Journal reported on the 20th that its investee OpenAI was preparing to apply for an initial public offering (IPO), fueling expectations that the value of SBG's holdings will rise. Shares of Britain's Arm Holdings also climbed more than 30% over the past two days.

Takayuki Masuzawa, head of stock trading at Phillip Securities Japan, said, 'Until very recently there was a view that OpenAI would fall behind in the development race, but it is moving with enough momentum to blow away those worries. An SBG-led AI rally, similar to that seen in the summer to autumn of 2025, could return to Japanese stocks.'

Electronic Parts and Robots Also Advance

Electronic parts stocks were also bought. Taiyo Yuden jumped 11.74% as expectations grew for improved pricing for multilayer ceramic capacitors (MLCCs) used in AI servers and other equipment. The stock updated its all-time high, set in April 2000, for the first time in 26 years. Murata Manufacturing also rose 5.99%.

Shares related to 'physical AI', which autonomously controls robots and infrastructure using AI, also drew buying. Kawasaki Heavy Industries rose 4.48%, while Fanuc gained 6.61%. On the 21st, Nikkei reported that Kawasaki Heavy would collaborate with US Nvidia in the medical and mobility fields.

Still, some viewed the rapid rise with caution. Takayuki Ishibashi, vice president at Goldman Sachs Securities, said of the market at present, 'There is a slight sense of overheating, but we must also factor in the possibility of further gains toward 65,000 yen.' Kazuyuki Muramatsu, head of investment at Wa Capital, said he was 'not inclined to keep buying from the 63,000 yen level on the Nikkei Average,' adding that expectations for a US-Iran ceasefire and OpenAI's competitiveness still carried uncertainty.

On the Tokyo Stock Exchange Prime market, gainers accounted for only 46.3% of issues as of the morning close. While the broader market was being lifted, funds were clearly concentrated in some AI and semiconductor-related stocks. Naoki Iwami, president of GMX, said that from past experience the AI stock rally can look like a bubble, but that it is difficult to judge valuations as excessive when considering increases in earnings per share (EPS) at individual companies.

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