Nikkei 225 sky rockets to unprecedented levels, fueled by AI boom
tokyo, Thursday, 11 September 2025.
The Tokyo Stock Exchange is celebrating a historic surge as the Nikkei 225 reached a new record high for the second consecutive day. The index closed at 44,372.50 yen, marking the first time it has ever exceeded 44,000 yen. This surge was propelled by strong buying from international investors, particularly in AI-related stocks. Mirroring the gains of US high-tech stocks, SoftBank Group saw a significant rise, while South Korean stocks marked their eighth consecutive day of gains.
Market overview
The Nikkei 225’s closing value represented a gain of 534.83 yen, or 1.22%, from the previous day [1]. The JPX Nikkei Index 400 also reached a new peak [1][3]. The rise of the Nikkei was influenced by gains in the U.S., where the NASDAQ Composite Index and the Philadelphia Semiconductor Index both reached record highs [1]. Oracle’s surge in the U.S. market boosted AI-related stocks, benefiting SoftBank Group, Advantest, and Tokyo Electron in Tokyo [1][2].
Factors influencing the surge
Optimism surrounding potential interest rate cuts by the U.S. Federal Reserve (FRB) is a key factor driving the market [3]. Expectations that the FRB will support the economy have spurred buying in semiconductor-related stocks in Tokyo [3]. The anticipation of new economic measures following the resignation of Prime Minister Ishiba also contributed to the positive sentiment [3]. The increasing demand for AI and data centers further fueled gains in tech stocks [3].
Trading dynamics and investor behavior
During the afternoon trading session, the Nikkei experienced some stagnation as individual investors engaged in profit-taking [1]. Investors also adjusted positions in anticipation of the U.S. Consumer Price Index (CPI) release for August [1]. While the TOPIX index also rose, it experienced fluctuations [1]. The value of shares traded on the Tokyo Stock Exchange’s Prime Market totaled approximately 4.9545 trillion yen, with 1.90929 billion shares changing hands [1].
Expert opinions on market trends
According to Hirohide Tsuboi, chief strategist at Daiwa Securities, expectations of interest rate cuts by the U.S. Federal Reserve are bolstering stock prices [3]. Tsuboi noted that the performance of Japanese companies is closely linked to the U.S. economy [3]. He also highlighted that the market anticipates fiscal expansionary policies from the upcoming leadership election, which could further stimulate the economy [3]. While cautioning about short-term overheating, Tsuboi suggests that moderate inflation could drive stock prices higher in the medium to long term [3].
Individual stock movements
Disco and Fujikura saw gains, along with Nintendo and Ryohin Keikaku [1]. Conversely, Fast Retailing, Toyota, and Sony Group experienced declines [1]. Lower U.S. long-term interest rates led to a notable decrease in bank and insurance stocks [1]. SoftBank Group (SBG) shares were boosted by Oracle’s surge, climbing 35.9% [2]. Advantest also hit a new high, propelled by positive sentiment surrounding NVIDIA’s new products [1][6].