Nikkei extends gains for a fourth day, nears 70,000 on AI and chips

2026-06-16

Nikkei extends gains for a fourth day

In Tokyo stock trading on the 16th, the Nikkei Stock Average rose for a fourth straight session, closing 87 points, or 0.1%, higher from the previous day at 69,404. The benchmark updated its record high for a second straight day and at one point during trading topped 70,000 for the first time, but profit-taking limited further gains.

Buying accelerates after BOJ meeting

The Bank of Japan raised its policy rate to 1.0% at the monetary policy meeting held through the 16th. The outcome was in line with market expectations, and buying strengthened after the announcement on relief. The Nikkei at one point climbed 703 points to 70,020.

Funds flow into AI and semiconductors

Following the previous day's gains on Wall Street, buying continued in Japanese shares tied to artificial intelligence (AI) and semiconductors. In the U.S. market on the 15th, the Philadelphia Semiconductor Index (SOX) rose 5.4% to a record high. The Nasdaq Composite Index also climbed 3%, posting its biggest gain since the end of March.

U.S.-Iran developments also support market

Risk appetite among investors strengthened after the U.S. and Iran agreed on a memorandum toward ending hostilities. Crude oil prices fell after U.S. President Donald Trump said the Strait of Hormuz was 'already partially open.' Yuugo Tsuboi, chief strategist for Japan and U.S. stocks at Daiwa Securities, said 'the announcement of earnings for the April-June 2026 quarter could be the next turning point.' In Tokyo trading on the 16th, Kioxia Holdings, Advantest, Fujikura and Murata Manufacturing were among the gainers.

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