Global Markets | Japan's Nikkei closes at record high as tech earnings overshadow Mideast concerns

Japan's Nikkei set a closing record high on Friday, capping a third consecutive weekly gain, as enthusiasm over technology sector earnings offset uncertainty over a potential peace deal in the Middle East.

The benchmark Nikkei 225 Index rose 0.97% to close at an unprecedented 59,716.18. ‌The gauge ⁠rose 2.1% ⁠on the week. The broader Topix eked out a 0.01% advance to end at 3,716.59.

The Nikkei briefly broke through the psychologically key 60,000 mark for the first time ​on Thursday, more than recouping all its losses since the war broke out in Iran almost two months ago and spread around the ​region.


Lebanon and Israel extended their ceasefire for ⁠three weeks after ‌a high-level meeting at the White House, ​U.S. President Donald ​Trump said on Thursday. Trump also said the ⁠U.S. would not use a nuclear weapon against Iran, following ​the extension of a ceasefire with Tehran earlier in ​the week.

Overnight, chipmaker Intel forecast second-quarter revenue that beat Wall Street expectations as demand surges for the company's server processors used for artificial intelligence in data centres. Ibiden, a Japanese supplier to Intel, soared 12.6% in Tokyo, leading gains on the Nikkei.

"Today's Japanese stock market ‌is being driven upward by a sense of relief regarding the situation in the Middle East, along with continued ​expectations of ​earnings growth from ⁠the expanding AI sector," said Wataru Akiyama, an equities strategist at Nomura Securities.

There were 92 advancers on the Nikkei index against 131 decliners. After Ibiden, ​the steepest gainers were Denka , up 8.3%, and chip industry supplier Advantest , which advanced 5.5%.

Canon was among the steepest decliners on the Nikkei, losing 7.9%. After the bell on Thursday, the company announced a downward revision to its earnings forecast.