Japan's Nikkei share average surpassed 67,000 for the first time on Monday, driven by AI-related stocks. SoftBank Group surged 10.3% to become the most valuable company in Japan, overtaking Toyota Motor, which fell 4.8%.
SoftBank's market capitalization rose to approximately 47.2 trillion yen ($296 billion), while Toyota fell to around 45.7 trillion yen. Over the weekend, SoftBank pledged 75 billion euros ($87.3 billion) over five years to build AI infrastructure in France.
The broader Topix index declined 0.2%, highlighting a sharp divide between tech and non-tech shares. Auto stocks were among the worst performers, down 4.2%. Only 73 of the Nikkei's 225 components rose, versus 152 that fell.
In the electronics sector, Murata Manufacturing surged 14.1%, the biggest percentage gainer on the Nikkei. However, not all chip-related stocks advanced: Advantest fell 2.2% and Fujikura dropped 3.6%.
The Middle East peace optimism that drove Friday's record highs faded as Washington and Tehran remained at odds. Despite the AI-fueled rally, concerns about overvaluation persist, according to Nomura Securities strategist Maki Sawada.