Nikkei Index Tops 50,000 in Historic 1st, Propelled by AI, Semiconductor Stocks

The Yomiuri Shimbun

17:28 JST, October 27, 2025

The Nikkei Stock Average exceeded 50,000 for the first time during the Tokyo Stock Exchange’s trading hours on Monday, closing at 50,512.32. That is up from 40,000 in March last year.

In February last year, the index surpassed the all-time closing high set during the bubble economy, about 34 years prior.

The TOPIX index, which represents a broad range of stocks, also surpassed its previous all-time high on Monday.

Major U.S. stocks rose at the end of last week, supporting stock prices in the Tokyo market at the start of this week, with the AI and semiconductor sectors showing gains. High-priced stocks for chip-related companies like Advantest Corp. were major players in pushing up the Nikkei index. SoftBank Group Corp., which invests in chip-related firms, also made a notable contribution with its share gains.

Additionally, investor confidence got a boost from easing trade tensions between the United States and China. The two countries held ministerial-level trade talks in Malaysia through Sunday, paving the way for Washington to shelve a 100% tariff on Chinese goods that had been scheduled for Nov. 1.

The “Takaichi trade” also remained strong. Investors continue to expect a “responsible and aggressive fiscal policy” from Prime Minister Sanae Takaichi, who took office on Oct. 21.

“Opinion polls by multiple parties show that the Takaichi Cabinet enjoys high approval ratings. There are growing hopes for her economic policies, such as for measures against rising prices,” said Yutaka Miura of Mizuho Securities Co.

At the end of 1989, the Nikkei average closed at an all-time high of 38,915.87, but then the bubble economy burst and the index slumped. It fell to a post-bubble low of 7,054.98 on March 10, 2009, amid the economic turmoil caused by the collapse of Lehman Brothers in 2008.

Stock prices began an upward trend when Prime Minister Shinzo Abe launched his second administration in December 2012, partly due to the Bank of Japan’s large-scale monetary easing. Since 2023, the pace of gains has accelerated, driven by buying from overseas investors focused on improved capital efficiency at Japanese companies.

Amid enthusiasm for a market led by AI and semiconductor stocks, where there is a high potential for growth, the Nikkei average set a record high for the first time in about 34 years on Feb. 22, 2024. On March 4, 2024, it topped 40,000 points.