On May 29, the Tokyo stock market saw the Nikkei 225 index close above the 66,000 mark for the first time, reaching a new all-time high. During intraday trading, the index also hit record levels, briefly surpassing 66,500 points before settling above 66,000 at the close [1].
Market participants attributed the rally to gains in the U.S. stock market and strong buying interest in semiconductor-related stocks, which drove overall investor sentiment higher. The Nikkei's rise was further supported by expectations for improved corporate earnings and a sense of reassurance regarding U.S. interest rate trends. As a result, buying activity was dominant throughout the session [1].
Analysts noted that while there is some caution about the high valuation levels, continued inflows of overseas funds could potentially drive the index even higher. Among individual stocks, major semiconductor and automobile companies saw significant buying, whereas some domestic demand-oriented stocks experienced selling pressure [1].
From a technical perspective, the 66,000 level is now seen as a new psychological threshold, and the market's ability to maintain this level is expected to influence future developments [1].
CONCLUSION
The Nikkei 225's record close above 66,000 reflects strong investor confidence, driven by robust performance in U.S. markets and semiconductor stocks. While there is some caution about high valuations, ongoing overseas investment could support further gains.