TOKYO - Tokyo stocks ended at record highs Wednesday as investors continued buying technology shares on expectations of robust demand driven by the artificial intelligence boom.
The 225-issue Nikkei Stock Average ended up 1,667.89 points, or 2.50 percent, from Tuesday at a record 68,402.13, after briefly extending gains to over 3 percent to an intraday high of 68,786.49.
The broader Topix index finished 71.96 points, or 1.83 percent, higher at an all-time high of 3,996.20.
On the top-tier Prime Market, the main gainers were nonferrous metal, glass and ceramics product and electric appliance issues.
The U.S. dollar briefly rose to the 160 yen level in Tokyo amid lingering uncertainty over prospects for a peace deal in the Middle East. The U.S. currency returned to the level for the first time since late April, when Japanese authorities intervened in the market to stem the yen's slide.
At 5 p.m., the dollar fetched 159.70-71 yen compared with 159.89-99 yen in New York and 159.68-69 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1615-1616 and 185.50-54 yen against $1.1626-1636 and 185.96-186.06 yen in New York and $1.1649-1650 and 186.02-06 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended up 0.075 percentage point from Tuesday's close at 2.640 percent, as inflation concerns resurfaced due to elevated crude oil prices amid uncertainty over the end of the war in the Middle East.
Tokyo stocks surged from the outset, tracking overnight gains on Wall Street, and extended their advance throughout the day, led by heavyweight technology shares such as chipmakers and semiconductor equipment makers.
The semiconductor sector was supported by Kioxia Holdings Corp., which said Tuesday it plans to start paying dividends in fiscal 2026, the first since its listing in December 2024.
Kioxia rose sharply on Wednesday, briefly overtaking Toyota Motor Corp. to become Japan's second-most valuable publicly traded company. Toyota lost the top spot on Monday for the first time in more than 22 years as SoftBank Group Corp. overtook it.
"Expectations for further growth (in the AI sector) remain high," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., referring to a series of good news developments.
The solid chip market outlook released on Tuesday by the World Semiconductor Trade Statistics also supported sentiment, brokers said.
