Japan's Nikkei rallies on fresh optimism over AI, Iran peace talks


A man walks past an electronic quotation board displaying the Nikkei 225 stock prices on the Tokyo Stock Exchange along a street in Tokyo on May 20, 2026. (Photo by Kazuhiro NOGI / AFP)

TOKYO: Japan's Nikkei share average climbed by the most in two weeks on Thursday on renewed enthusiasm for technology stocks and easing geopolitical tensions linked to the Iran war.

The benchmark Nikkei 225 Index rose 3.14% to close at 61,684.14, its biggest one-day increase since May 7. The broader Topix climbed 1.64% to 3,853.81.

The Nikkei mirrored Wall Street gains ahead of earnings from AI bellwether Nvidia, which forecast sales above market estimates.

Oil prices dropped sharply overnight after U.S. President Donald Trump said negotiations to end the war in Iran were in the final stages, easing supply concerns.

Investor sentiment also got a boost from an averted labour strike at Samsung Electronics, which could have disrupted South Korea's economy and global chip supply, and from reports that OpenAI is preparing to go public. SoftBank Group, a major investor in the company and other AI ventures, surged to its daily limit.

"The market is being led by AI and semiconductor-related shares following developments including the avoidance of a strike at Samsung Electronics and Nvidia's earnings," said Wataru Akiyama, an equities strategist at Nomura Securities.

"We're seeing gains across a wide range of sectors due to the drop in crude oil prices."

There were 140 advancers on the Nikkei index against 85 decliners. The largest percentage gainers were SoftBank Group, up 19.9%, followed by Socionext, which jumped 19%, and Ibiden, trading 14.3% higher. - Reuters

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