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Asian Stocks Rally as Japan’s Nikkei Hits Record High on AI and Chipmaker Surge

Asian Stocks Rally as Japan’s Nikkei Hits Record High on AI and Chipmaker Surge. Source: Flickr

Asian stock markets advanced sharply on Monday, led by Japan’s Nikkei 225 and TOPIX indexes reaching fresh record highs as investors reacted positively to strong gains in U.S. semiconductor and artificial intelligence stocks. Optimism surrounding a potential U.S.-Iran peace agreement also improved global market sentiment and boosted risk appetite across the region.

Japan’s Nikkei 225 surged more than 3% to an all-time high of 65,408.87, while the broader TOPIX index climbed to a record 3,953.89. The rally was largely fueled by chip-related companies after upbeat earnings and guidance from major U.S. semiconductor firms strengthened confidence in the AI sector. Renesas Electronics and Rohm Ltd both jumped nearly 10%, leading gains among Japanese technology shares.

Wall Street futures also moved higher during Asian trading hours despite U.S. markets being closed for a public holiday. Nasdaq futures rose more than 1% as investors continued rotating into AI and semiconductor stocks, reflecting strong demand for technology-driven growth opportunities.

Elsewhere in Asia, China’s Shanghai Composite gained 0.6%, while the CSI 300 index added 1%. Australia’s S&P/ASX 200 advanced 0.5%, Singapore’s Straits Times Index climbed 0.4%, and India’s Nifty 50 rose 1% in early trading. Markets in Hong Kong and South Korea remained closed due to holidays.

Investor confidence also improved after U.S. President Donald Trump stated that negotiations related to reopening the Strait of Hormuz were “largely negotiated,” raising hopes for reduced geopolitical tensions in the Middle East. However, Trump later warned there was “no rush” to finalize the agreement, leaving markets cautious about possible changes in direction.

Oil prices declined sharply on expectations that smoother energy flows could return through the critical shipping route. Brent crude dropped more than 4%, falling below $100 per barrel and easing concerns over inflation pressures that have recently weighed on global equities. Despite the rally, analysts noted that markets remain highly sensitive to developments surrounding Iran negotiations, energy prices, and future global interest rate policies.

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