Japan’s Nikkei 225 hits record 68,000 as AI rally powers on
The Nikkei 225 jumped 2.9% to close at a record 68,043 on Wednesday, lifting the blue-chip index above the 68,000 mark for the first time.
Source: Al Jazeera · July 23, 2026 at 8:36 AM · AI-assisted report
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JAPAN, 23 JULY 2026 —
The Nikkei 225 jumped 2.9% to close at a record 68,043 on Wednesday, lifting the blue-chip index above the 68,000 mark for the first time.
The move extends a 32.8% gain in 2026 so far, driven by global demand for AI-related semiconductors and a weaker yen that benefits exporters, according to ANZ.
“Investor enthusiasm over the AI boom is lifting Asian equity markets,” Khoon Goh, head of Asia research at ANZ, told Al Jazeera. The surge reflects strong demand for high-end chips that has already boosted South Korean and Taiwanese chipmakers and is now benefiting Japanese suppliers.
Tokyo Electron, Japan’s largest semiconductor equipment maker, led the advances with a 14% intraday gain after earnings beat forecasts. Advantest rose 5.5% and Shin-Etsu Chemical added 4%, extending a multi-week rally tied to AI infrastructure build-out.
SoftBank, which briefly overtook Toyota as Japan’s most valuable company by market capitalisation on Monday, fell 3% as investors took profits on its heavy AI bets.
The AI chip frenzy has pushed three memory makers—South Korea’s SK Hynix and Samsung Electronics, and the US’s Micron—into the $1 trillion market capitalisation club over the past month. Of the 17 firms to reach the milestone, 12 are based in the US.
US tech giants are expected to spend about $800 billion on AI-related capital investment in 2026, Goldman Sachs estimates. Alphabet plans to issue $80 billion in new shares to fund capital expenditure of $180-190 billion next year, the latest sign of unabated commitment despite stretched valuations.
Analysts warn that valuations in the sector may be unsustainable, yet capital commitments continue to rise.
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Malaysia Impact
The AI boom in Japan may lead to increased investment and trade opportunities with Malaysia, potentially boosting its economy and technological advancements. This could also have a positive effect on the ringgit and the KLCI.