The Nikkei Average Index rose by 1,037 points or 2.1% in the first half of the day, surpassing the 50,000-point mark for the first time

Japanese stocks rose significantly, with expectations of a U.S. interest rate cut heating up, and the three major U.S. stock indices hitting record closing highs. The consensus on trade between China and the U.S. further enhanced risk appetite. The Nikkei average opened up 606 points and the gains expanded, rising by as much as 1,191 points to reach a new high of 50,491 points, closing up 1,037 points or 2.1% at 50,337 points.

U.S. President Trump visited Japan, and the market anticipated that the U.S. would request Japan to increase defense spending, leading to a rise in defense stocks. Kawasaki Heavy Industries (7012.JP) rose by 7%. Mitsubishi Heavy Industries (7011.JP) and IHI (7013.JP) increased by 1% and 2.4%, respectively.

AI concept and semiconductor stocks continued to rise, with Kioxia (285A.JP) up 8.5%, SoftBank (9984.JP) and Advantest (6857.JP) rising by 4.3% and 5.2%. Screen Holdings (7735.JP) and Lasertec (6920.JP) increased by 2.5% and 1.8%, while Tokyo Electron (8035.JP) and Discus (6146.JP) rose by 1.2% and 0.8%. Additionally, wire stocks such as Furukawa Electric (5801.JP) and Fujikura (5803.JP) increased by 1.2% and 4.7%, and JX Metals (5016.JP) rose by 5.8%. Electric utility stock Tokyo Electric Power Company (9501.JP) increased by 1.2%.

In other stocks, Nintendo (7974.JP), Fast Retailing (9983.JP), and Hitachi (6501.JP) rose by 2.5% to 2.8%, while Mitsubishi UFJ Financial Group (8306.JP) increased by 2%. Rakuten Group (4755.JP), Sony (6758.JP), and Sanrio (8136.JP) each rose by 1%. In the automotive sector, Nissan (7201.JP) and Toyota (7203.JP) increased by 1.6% and 1.8%, while battery stock Panasonic (6752.JP) fell by 0.7%.

The exchange rate of the U.S. dollar against the Japanese yen is 152.96