Japan’s Nikkei index closed above 60,000 points for the first time at the end of trading on Monday, as optimism about corporate financial results outweighed concerns about the crisis in the Middle East.
The Nikkei index rose 1.38 percent to close at a record high of 60,537.36 points. The broader Topix index also gained 0.5 percent to 3,735.28 points.
Major Wall Street indexes closed at record highs on Friday after Intel reported earnings that beat expectations, buoyed by rising demand in the artificial intelligence sector.
Shares of Keyence, a provider of automated manufacturing systems for factories, and Fanuc, a manufacturer of factory robots, jumped to the daily limit of about 16 percent, leading gains on the Nikkei index after the two companies announced after the close of trading on Friday that they had recorded better-than-expected profits.
Reuters quoted Nomura Securities equity analyst Maki Sawada as saying: “Stocks linked to earnings announcements, as well as stocks of AI-related and semiconductor-related companies, have led the market higher… This week will see a steady stream of earnings reports from major companies in Japan and the United States, so the market’s attention will naturally turn to these results.”
She added that since 60,000 points represents a psychological milestone, it is likely that a number of investors are monitoring this level, so profit-taking may occur around this range.
The Nikkei index fell shortly after trading opened, but rebounded strongly following a report by Axios that Iran had presented the United States with a new proposal to end the war. No negotiations between the two sides took place over the weekend.
According to Reuters, 94 stocks rose on the Nikkei index and 130 fell.
SMC shares rose 7.1 percent, making it one of the biggest gainers, after Reuters reported that Balizer Capital had made a large investment in the company.
But shares of Rohm plunged 9.19 percent after auto parts maker Denso Corp said it was considering withdrawing its takeover bid for the company.
