Nikkei rebounds on US-Iran talks hopes, MLCC shares hit highs
2026-05-29
Nikkei rebounds to a record high
In Tokyo trading on the morning of the 29th, the Nikkei stock average rebounded to close at 65,896.57, up 1,203.45 points, or 1.86%, from the previous day. Buying of stock index futures by overseas speculators lifted the market after US shares rose on the 28th on expectations of progress in US-Iran talks. At one point, the index gained more than 1,300 points and surpassed the record high of 65,158 set on the 25th.
US-Iran talks expectations support market
US news site Axios reported on the 28th that the United States and Iran had agreed to extend a ceasefire period by 60 days and sign a memorandum to discuss Iran's nuclear issue. The memorandum would not restrict ships passing through the Strait of Hormuz, and was awaiting final approval from US President Donald Trump. In response, Iran's Tasnim news agency said on the 28th that the agreement had not been finalised. Even so, optimism dominated the market.
On the US stock market on the 28th, the Nasdaq Composite rose for a sixth straight session and hit a record high for a third consecutive day. The Philadelphia Semiconductor Index (SOX), which tracks major chip-related stocks, also gained 0.99%, and in Tokyo on the 29th, chip-related shares including SoftBank Group (SBG), Ibiden and Kioxia Holdings were bought.
Buying concentrates on MLCC shares
MLCC-related names ranked among the biggest contributors to the Nikkei's gains. Murata Manufacturing at one point rose 15%, Taiyo Yuden gained 14% and TDK climbed more than 9%, with all three hitting all-time highs. MLCCs are key components that stabilise voltage inside artificial intelligence (AI) servers, and recent demand growth and expectations of price increases drew buying.
Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said: 'Information is mixed, but it is probably true that talks toward a provisional US-Iran agreement are in the final stages.' Even if discussions over opening the Strait of Hormuz and the disposal of highly enriched uranium by Iran take time, he expects that 'there is still strong belief that they will eventually move toward a final agreement.'
Tight supply gives related shares a tailwind
Tighter supply-demand conditions for MLCCs are also showing up in economic data. In April trade statistics released by the Ministry of Finance on the 28th, MLCC export value rose 28.0% from a year earlier. Manabu Akizuki, a research analyst at Nomura Securities, said electronics parts wholesalers are deliberately building inventories and that 'even general-purpose MLCCs that should ordinarily be sufficient are facing a supply-demand squeeze.' In addition to front-loading orders in anticipation of price increases, companies are also building stocks in expectation of shortages of high-performance MLCCs, as production schedules for US Nvidia's AI chip Rubin and US Apple's iPhone overlap in 2026, he said.
Evidence of tightness also emerged overseas. Taiwan's Commercial Times reported on the 27th that Guangdong Fenghua Advanced Technology, a manufacturer of electronic components, had stopped taking orders for MLCCs and other products after a surge in orders. It also said Murata Manufacturing's plant utilisation rate had exceeded 90% and was nearing full capacity.
Since the start of May, the Nikkei has risen by more than 5,000 yen. Shares in power-cable makers such as Fujikura and Furukawa Electric, which had surged sharply, have weakened, but market participants say funds are shifting within AI-related stocks from cables to electronic components. While caution over high valuations remains, sector rotation continues, and views are spreading that Japanese shares may still have further room to rise.
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