Japan’s Nikkei surged to a record high, jumping over 5% as strong tech earnings and hopes for a Middle East peace deal lifted investor sentiment. The rally was led by semiconductor-related stocks, while bonds also advanced as markets caught up after holidays.

Japan's Nikkei closes at record high on tech-fueled rally, Iran peace optimism

May 07, 2026

Irene Wang/Reuters

FILE PHOTO: A pedestrian walks past a stock quotation board showing the Nikkei share average and the exchange rate between the U.S. dollar and the Japanese yen, outside a brokerage in Tokyo, Japan, April 30, 2026.

Kim Kyung-Hoon/Reuters

Japan's Nikkei share average shot to a record high on Thursday (May 7) and the nation's bonds rallied as financial markets reopened after holidays, catching up with optimism over strong technology earnings and signs of a potential peace deal in the Middle East.

The benchmark Nikkei 225 Index jumped 5.58%, the most in more than a year, to close at an unprecedented 62,833.84. The gauge reached as high as 63,091.14, breaking through the psychological level of 63,000 for the first time. The broader Topix climbed 3% to 3,840.49.

Iran said it is reviewing a U.S. proposal to end the more than two-month war, while President Donald Trump said the U.S. has had very good talks with Tehran.

There were 174 advancers on the Nikkei index against 49 decliners. The largest percentage gainers in the index were tech sector suppliers, led by Ibiden, up 22.4%, followed by Sumco, which surged 19.7%, and Kioxia, 19.2% higher.

-Irene Wang/Reuters