Nikkei 225 Hits 67,000 for First Time, Up 30% This Year on AI-Fueled Inflows

3 articles · Updated · Business Insider · May 25

67,000 marked a new milestone for Japan’s Nikkei 225 on Monday, extending a rally that has lifted the benchmark about 30% this year.
AI demand is driving the latest leg higher, boosting semiconductor-equipment, chip-testing and industrial names, while SoftBank, Tokyo Electron, Advantest and other Japan-linked plays attract fresh investor interest.
Foreign money has also accelerated since 2024 as investors warm to Japan’s reflation story, corporate-governance reforms and a weaker yen that supports exporters and makes local assets cheaper.
Economic data are reinforcing the move: first-quarter real GDP grew at a 2.1% annualized rate, inflation has stayed near or above the BOJ’s 2% target, and higher wages are helping consumption recover.
Strategists increasingly frame the surge as a structural shift rather than another false dawn, with Bank of America already projecting 67,000 for the Nikkei by year-end and investors betting Japan is finally exiting deflation.

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