Japan and South Korean Equities Reach Record Highs as Nikkei Stages Post-Holiday Surge

TradingKey - On Thursday, May 7, the Japanese stock market staged a significant catch-up rally after returning from a multi-day holiday. The Nikkei 225 index rose as much as 6% intraday to 63,091.14, hitting a record high; it closed up 5.58% at 62,833.84, a record closing high. The single-day gain also marked the highest record since April 2025.

The South Korean benchmark KOSPI index briefly broke the 7,500-point mark during the day, rising nearly 2% to touch an intraday high of 7,531.88; it eventually closed up 1.43% at 7,490.04, hitting a record closing high.

On the news front, Trump stated that the U.S. and Iran held 'very productive' talks over the past 24 hours and that it is 'very likely' the two sides will reach an agreement. This could be the closest the parties have come to ending the war. Market expectations that the conflict might head toward a ceasefire or resolution, combined with positive sentiment, drove a sharp rally in the stock market.

Regarding Japanese stocks, as the earnings of U.S. tech giants during the holiday period generally exceeded expectations, it triggered a sharp rise in Japan's semiconductor sector. SoftBank Group surged over 18%, and Advantest rose more than 6%, driving the broader market higher.

Regarding South Korean stocks, the three major U.S. stock indices collectively closed higher the previous night, with the Nasdaq and S&P 500 continuing to hit record highs. Large-cap tech stocks saw broad gains, with NVIDIA (NVDA) rising more than 5%, driving its total market capitalization back above $5 trillion, AMD surging over 18% to a new high, both of which inspired gains in South Korean tech stocks. South Korean heavyweight Samsung closed up 2.07%, while SK Hynix closed up 3.31%. Currently, South Korea's market capitalization has surpassed that of Canada, becoming the 7th largest stock market in the world.