Nikkei extends gains to 69,593, led by AI and semiconductors
2026-06-15
Nikkei extends gains to 69,593, led by AI and semiconductors
Stocks rise on welcome for US-Iran agreement
Japan's Nikkei Stock Average extended gains on the Tokyo stock market on the 15th, closing the morning session up 3,573 points, or 5.41%, from the previous Friday at 69,593. Buying spread across a broad range of stocks after US President Donald Trump posted on social media early on the 15th Japan time that he had agreed to end the war with Iran.
Artificial intelligence and semiconductor-related shares led the market, while money also flowed into stocks seen as laggards. Investors are increasingly taking the view that, beyond fear of missing out, or FOMO, there is still room for further gains.
Buying broadens as geopolitical risks recede
Takayuki Ishibashi, vice president at Goldman Sachs Securities, said that while the signing of a memorandum was being considered as of last week, the recent progress, fall in crude oil prices and decline in interest rates were not priced in. Tomoya Kitaoka, chief equity strategist at Nomura Securities, referred to repeated bouts of ceasefire hopes in the past and said the end of the war is being welcomed as a turning point.
AI stocks gained fresh momentum on the day as geopolitical risks eased. Tokyo Electron at one point rose 10% to a record high since its listing. SoftBank Group rose 13%, Ibiden 19%, Advantest 8% and Kioxia Holdings 11%. Stocks related to multilayer ceramic capacitors, or MLCCs, were also bought, with Murata Manufacturing rising to the upper limit of its daily trading range and Taiyo Yuden climbing 19%.
Lower oil prices lift cyclical stocks
What set the market apart from the previous week was that, alongside AI and semiconductor-related shares, investors also bought stocks that had been under pressure from concerns over higher crude oil prices. Among construction shares, Taisei rose as much as 12% and Kajima 10%. Airline shares such as Japan Airlines and ANA Holdings were also higher.
Following the opening of the Strait of Hormuz, worries over supply chains also eased. Mitsubishi Chemical Group and Mitsui Chemicals, both of which had been weighed by concern over naphtha procurement costs, also attracted buying. Automakers including Toyota Motor rose as well.
Takahiko Masuzawa, head of equity trading at Phillip Securities, said, 'With concerns over lower oil prices and supply chains receding, investors feel the pressure to keep up with the rally.'
Domestic demand stocks also re-rated
The US-Iran agreement could also shift the direction of buying. Richard Kay, portfolio manager at French asset manager Comgest, said that following the ceasefire agreement, he would 'buy more domestic demand stocks such as retail and food'. The view is that a pause in the yen's weakness would be a tailwind for domestic demand shares.
Surprise was also spreading in the market. Tomo Kinoshita, global market strategist at Invesco Asset Management, said, 'I did not expect it to rise this much.' Keita Kubota, head of Japanese equity management at Neuberger Berman, said, 'The pace of the rise is incredible. Maybe this is what a bubble looks like.' With a bullish mood dominating, some are now saying 70,000 on the Nikkei Average is only a waypoint.
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