Nikkei 225 Breaches 68,000 Milestone as Global AI Trade Powers Ahead

The Nikkei 225 surged past 68,000 for the first time in its history on Wednesday morning, as a powerful rally in artificial-intelligence-linked shares continued to propel Japanese equities. By midmorning in Tokyo, the index stood at 68,293.88, a jump of 1,559.64 points, or 2.34%, extending a global tech-led advance. Chip equipment makers were among the session’s star performers: Tokyo Electron soared 10.1%, while test equipment manufacturer Advantest added 4.6%.

The catalyst emanated from Wall Street, where all major U.S. indices had notched fresh records on Tuesday. Robust earnings reports from leading American technology companies reinforced expectations of surging demand for AI infrastructure, prompting a wave of buying in Tokyo from the opening bell. Viewed from New York, the rally reflects a broadening conviction that the AI investment cycle is far from over, and that Asian hardware suppliers stand to benefit disproportionately.

Currency markets added another layer to the Tokyo narrative. The dollar briefly climbed to ¥160, touching a level not seen since April 30, the day Japanese authorities are widely believed to have conducted their last round of yen-buying intervention. The dollar subsequently slipped back slightly, but the move served as a reminder that extreme yen weakness—while a boon for exporters’ earnings—carries the risk of renewed official action. In London, currency analysts noted that the yen’s persistent softness continues to underprice the likelihood of eventual Bank of Japan tightening.

Broader regional trading painted a more nuanced picture. In Hong Kong, the Hang Seng index lost 0.9%, as investors rotated out of Chinese tech names. Oil prices rose more than $1 a barrel, with Brent crude extending gains amid supply concerns. The divergence suggests that the AI exuberance is not yet a universal tide: it remains concentrated in markets with direct exposure to the semiconductor value chain. Looking ahead, the Nikkei’s trajectory will hinge on whether the AI earnings story retains its potency and whether Tokyo can navigate the delicate balance between a supportive yen and official resistance to excessive depreciation.