Japanese stocks rose sharply on Thursday, 7 May, as trading resumed after a holiday pause, with investors enthusiastic about the global upswing, driven by expectations of a potential agreement between the US and Iran and strong growth in technology shares.
The Nikkei 225 soared by 5.58% to finish at 62,834, reaching a new record high due to widespread purchasing activity in semiconductor and AI-related companies. The rise was driven by Softbank (18.44%), Mitsui Mining & Smelting (17.05%), and Seiko Epson (15.16%).
Investor confidence received a boost from impressive earnings reports from leading global tech firms, which heightened optimism about artificial intelligence and propelled gains in semiconductor-related stocks.
Among the best performers, SoftBank Group skyrocketed over 18% to reach a six-month peak, achieving its most substantial single-day rise since 2020. Stocks linked to semiconductors also saw significant gains, with Advantest rising 6.8% and Tokyo Electron advancing9%.
Other significant technology stocks, such as Fujikura, Lasertec, and Disco Corporation, also experienced noteworthy gains.
Market sentiment improved further after reports emerged that the US and Iran are nearing completion of a 14-point memorandum of understanding to resolve the conflict. This prospective agreement could potentially facilitate the reopening of the Strait of Hormuz and lay the groundwork for broader nuclear discussions.
Technical Views
Kapil Shah, Technical Analyst at Emkay Global and Technical Analysis Trainer at Finlearn Academy, explained that the index has given a fresh breakout after nearly 60 trading sessions, indicating a bullish continuation pattern and strengthening the broader trend structure.
The breakout suggests renewed upside momentum, while intermediate corrections in the 58,500-60,000 range can be considered buying opportunities within the ongoing uptrend. As per the Range Rule Theory, the breakout projects an upside potential towards the 72,000 level over the medium term.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
