Japan's Nikkei index recorded its largest gain in two weeks on Thursday, buoyed by a resurgence in technology stock enthusiasm and easing geopolitical tensions related to the Iran conflict. The Nikkei 225 rose 3.14% to close at 61,684.14 points, marking its biggest single-day increase since May 7. The Topix index advanced 1.64% to finish at 3,853.81 points.
The Nikkei followed gains in U.S. stocks, after leading artificial intelligence company Nvidia reported earnings, providing a second-quarter revenue forecast that exceeded Wall Street estimates and announcing an $80 billion stock buyback plan.
U.S. President Trump stated that negotiations to end the Iran war have entered their final stages, alleviating market supply concerns and causing a sharp overnight drop in oil prices.
Investor sentiment was also lifted as Samsung Electronics successfully averted a potential strike that could have disrupted the South Korean economy and global chip supply. Additionally, reports that OpenAI is preparing for an initial public offering provided a further boost. SoftBank Group, a significant investor in OpenAI and other AI startups, surged to its daily limit-up.
"Driven by positive factors such as Samsung avoiding a strike and Nvidia's results, the market is being led higher by AI and semiconductor-related stocks," said Wataru Akiyama, a stock strategist at Nomura Securities. "With the drop in crude oil prices, we are seeing broad-based gains across multiple sectors."
Within the Nikkei 225, 140 stocks advanced while 85 declined. The top gainer was SoftBank Group, up 19.9%, followed by Socionext, which soared 19%, and Ibiden, which rose 14.3%.
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