Nikkei 225 Breaks 68,000 to Hit Record High, Semiconductor Sector Surges, Tokyo Electron Rises Over 13%

TradingKey - During the Asian session on June 3, the Nikkei 225 Index rose more than 2% driven by the AI boom, breaking through the 68,000 psychological level for the first time in history. South Korean markets were closed for local elections.

At the close, the Nikkei 225 settled at 68,401.91 points, up 2.5%, while the TOPIX index closed at 3,996.2 points, up 1.83%.

[Source: TradingView]

The core driver behind the Nikkei's breakthrough of 68,000 points came from the semiconductor sector. Overnight, the Philadelphia Semiconductor Index surged nearly 6%, and the enthusiasm for tech stocks quickly spread to the Japanese market.

Weighty components performed particularly well: Tokyo Electron soared 13.39%, and Advantest rose 5.09%. Screen Holdings jumped nearly 18%, while Kioxia broke through 80,000 yen intraday to reach a new record high since its listing.

Tensions in the Middle East continued to escalate, with the situation in the Strait of Hormuz pushing up oil prices as Brent crude neared $97 per barrel. As a major energy importer, Japan faces mounting pressure from imported inflation.

Regarding exchange rates, the yen fell to the 160 per dollar mark again during intraday trading. The market generally expects the Bank of Japan to raise the benchmark interest rate from 0.75% to 1% at its June policy meeting. At that time, a strengthening yen could, to some extent, dampen the short-term performance of export-oriented stocks.