Japan’s Nikkei 225 rose above 67,000 for the first time on Monday, as a surge in SoftBank Group turned the technology investor into the country’s most valuable listed company and underlined the growing force of the artificial intelligence trade in Tokyo.
The blue-chip gauge climbed as much as 1.4% to an intraday record of 67,231.28 before ending the midday session at 67,038.24, up 1.1%.
The move was heavily concentrated in one stock. SoftBank jumped 10.3%, accounting for 618 points of the Nikkei’s 709-point advance.
The rally pushed SoftBank’s market value to about 47.2 trillion yen, ahead of Toyota Motor at 45.7 trillion yen.
The shift marks a symbolic turn for Japanese equities, with investors rewarding exposure to AI infrastructure and semiconductor demand over the traditional industrial and auto names that long dominated the market.
SoftBank drives the index
SoftBank has become one of Japan’s clearest proxies for global AI enthusiasm, helped by its technology investments and its exposure to the build-out of data centres, chips and AI computing infrastructure.
Its latest move came as investors continued to price in the scale of future AI-related spending.
The company’s sharp gain showed how much influence a small group of technology-linked heavyweights now has over the Nikkei, an index where price-weighted constituents can have an outsized effect.
The rally also reflected a broader global pattern. Equity markets from the US to Asia have increasingly been led by companies tied to AI chips, servers, networking equipment and cloud infrastructure.
In Japan, that has lifted names connected to the semiconductor supply chain and widened the valuation gap with slower-growing sectors.
A divided market
The strength in the Nikkei masked a weaker tone across the broader market.
The Topix index fell 0.2%, showing that Monday’s advance was far from universal.
Only a narrow section of the market participated in the rally. Information technology shares rose 4.3%, while autos dropped 4.2%, making them the biggest drag among major sectors.
Toyota fell as investors moved away from carmakers, while Mitsubishi Motors slid 9.1%.
The contrast was stark: AI and chip-related shares powered the headline index higher, while domestically exposed and cyclical stocks struggled.
That split suggests investors are still willing to chase Japan’s AI winners, but are becoming more selective elsewhere.
Chip stocks remain in focus
Murata Manufacturing was the strongest performer on the Nikkei, rising 14.1% as investors looked for companies that could benefit from demand for advanced electronics and components used in AI infrastructure.
Other technology names were more mixed. Advantest and Fujikura declined, showing that the AI trade is not lifting every semiconductor-linked stock equally.
Investors are increasingly separating companies with direct earnings leverage from those where valuations may already reflect much of the optimism.
That selectivity matters because Japan’s equity rally has become more dependent on expectations for AI-related profit growth.
If those expectations are met, the Nikkei’s record run could have further room. If earnings disappoint, the same concentration that lifted the index could leave it vulnerable to sharp reversals.
For now, Monday’s trading delivered a clear message: SoftBank has replaced Toyota at the top of Japan’s market-value rankings, and AI has become the dominant force shaping Tokyo’s stock market narrative.
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