AI shares drive sharp Nikkei rebound to 68,452 at midday
2026-06-03
In Tokyo stock trading on the 3rd, the Nikkei average rebounded sharply, with the morning close up 1,718 points, or 2.57%, from the previous day at 68,452. It topped its closing record and traded above 68,000 for the first time intraday. Buying spread to artificial intelligence and semiconductor-related shares after a rally in U.S. tech stocks the previous day. Kioxia Holdings' market capitalisation briefly surpassed Toyota Motor's.
AI-related shares lead the market
In afternoon trading, gains at one point topped 2,000 points, and the Tokyo Stock Price Index, or TOPIX, also briefly rose above 4,000 for the first time. Kioxia was the starting point that lifted the market on the day. Its shares at one point rose 7% from the previous day, renewing their all-time high for a second straight day. Its market capitalisation briefly overtook Toyota's, lifting it to second place among Japan-listed companies.
The stock drew attention after the company said at an investor briefing on the 2nd that it plans to introduce a progressive dividend policy under which it will maintain or raise dividends without cutting them. The policy could start as early as the second half of the fiscal year ending March 2027. Comments on share buybacks were also made, and the market took them as a broadening of shareholder returns.
Kazuyoshi Saito, senior analyst at IwaiCosmo Securities, said the stock has been valued for its growth potential, but the introduction of a progressive dividend could expand its investor base. He said a stance of strengthening shareholder returns while continuing growth investment is likely to be welcomed by a wide range of investors.
Buying broadens to a wider range of stocks
Semiconductor-related shares such as Tokyo Electron and Advantest also rose. In the U.S. stock market the previous day, tech stocks were bought after Nvidia CEO Jensen Huang expressed an upbeat view on data centre demand, and Tokyo followed that lead. In a forecast released on the 2nd, the World Semiconductor Trade Statistics, or WSTS, which comprises major chipmakers, said the global market in 2026 is expected to expand about 90% from 2025 to $1.5112 trillion, or about 240 trillion yen. Daiki Takei, strategist at Resona Holdings, said the move helped reassure investors concerned about overheated stock prices.
In the U.S. market on the 2nd, Corning, which makes optical components for data centres, surged. In Tokyo as well, optical fibre-related 'three cable brothers' stocks, including Furukawa Electric and Sumitomo Electric Industries as well as Fujikura, which had been falling, were bought.
Buying also spread beyond AI and semiconductors. Among automakers, which had been seen as lagging, Toyota, Honda and Mazda rose. Toyota gained 1.82% based on the morning close and retook second place in market capitalisation behind SoftBank Group.
Some bank stocks also held firm. Bank of Japan Governor Kazuo Ueda was scheduled to give a speech in the afternoon, stoking speculation about a rate hike in June. In the morning session on the Tokyo Stock Exchange Prime Market, advancing issues accounted for about 60% of the total, and TOPIX at one point exceeded its record high of 3,957.17 set on May 29. Kohei Onishi, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, said it is healthy to see rotation across the market. If funds concentrated in AI and semiconductor-related shares continue to flow into a broader range of stocks, the rally in equities is likely to become more durable.
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