The Nikkei 225 breached the 67,000 mark for the first time on Monday, closing at 66,934.33 after touching a record high of 67,231.28. The rally was fueled by AI-related stocks, led by SoftBank Group, which surged 14% to overtake Toyota Motor as Japan's most valuable company.
SoftBank's market cap reached roughly $306 billion, while Toyota's fell to about $288 billion after sliding 4.5%. The boost followed SoftBank's pledge of €75 billion over five years to build AI infrastructure in France.
The broader Topix index, however, sagged 0.4%, highlighting a split between tech and the rest of the market. Only seven of 33 industry groups rose, led by a 5.6% jump in IT firms. Auto shares were among the worst performers.
Strategists at Jefferies noted the AI rally is underpinned by strong earnings, despite concentration risks. Adding to market uncertainty, geopolitical tensions in the Middle East persist, and some analysts cite deep-rooted concerns about overvaluation.
Still, buying interest is spreading to AI-related stocks that had been lagging, such as Murata Manufacturing, which gained 9%.