Japan’s Nikkei scales record peak on Mideast, AI optimism
Published Fri, May 29, 2026 · 05:06 PM
[TOKYO] Japan’s Nikkei share average rose to a record high on Friday, powered by renewed optimism for a near-term peace deal in the Middle East and enthusiasm about AI shares after strong earnings from Dell Technologies.
The Nikkei notched a lifetime-high close by climbing 2.5 per cent to 66,329.50, and also marked an all-time intraday peak at 66,505.02.
The broader Topix advanced 1.4 per cent to 3,957.17, also a record close, and set a new intraday high at 3,984.58.
Sources told Reuters that the US and Iran have reached an agreement to extend their ceasefire and lift restrictions on shipping, though US President Donald Trump has yet to approve it, and Iranian state media said it had not been finalised.
Conflicting headlines in recent days around progress in negotiations between Washington and Teheran have seen stocks swing, but for the week, the Nikkei and Topix gained 4.7 per cent and 1.7 per cent, respectively.
The Nikkei outperformed largely due to a high concentration of tech stocks, and heavy weighting for some darlings of the AI trade, such as startup investor SoftBank Group, which gained 5.1 per cent on Friday to bring its advance for the week to 10.9 per cent.
On Thursday, Dell raised its annual revenue and profit forecasts, showing data centre expansion by clients is fuelling demand for its AI-optimised servers.
“Dell Technologies commented that there is no sign of a slowdown in AI demand,” driving a sharp rise in Japanese AI stocks such as SoftBank, said Wataru Akiyama, a strategist at Nomura Securities.
Meanwhile, “announcements from both the US and Iran suggesting progress toward a provisional agreement have provided a sense of reassurance to the market,” buoying stocks more broadly, he said.
Of the Nikkei’s 225 components, 163 rose versus 61 that fell, with one ending flat.
Silicon maker Sumco soared more than 19 per cent, making it the index’s biggest percentage gainer.
However, not all AI shares got a lift from Dell, with data centre cable makers Fujikura and Furukawa Electric dropping 4.9 per cent and 4.1 per cent, respectively, to be among the Nikkei’s worst performers. REUTERS
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