Japan’s Nikkei Extends Rally as AI Optimism Lifts SoftBank and Tech Stocks

Japan’s equity markets advanced sharply on Friday, with the benchmark Nikkei 225 climbing 1.7% to trade above 62,700, while the broader TOPIX gained 0.7% to 3,880, extending momentum from the previous trading session as investors increased exposure to artificial intelligence and technology-related equities.

The rally was led by SoftBank Group, whose shares surged more than 10%, adding to the company’s nearly 20% advance in the prior session. Investor sentiment strengthened following reports that two companies linked to SoftBank’s portfolio — OpenAI and SB Energy — are moving closer to potential public listings in the United States.

The broader technology sector also posted strong gains, reinforcing optimism surrounding AI infrastructure, semiconductor supply chains, and digital expansion themes across Asia. Shares of Kioxia Holdings rose 3%, while Fujikura advanced 6.2% and Ibiden Co. gained 3.9%.

Tehran signaled that the latest proposal from Washington had partially reduced differences between the two sides, though uncertainty remained elevated.

Comments from Ali Khamenei regarding the preservation of Iran’s uranium stockpile, combined with disagreements surrounding proposed toll measures in the Strait of Hormuz, continued to weigh on expectations for a near-term diplomatic breakthrough.

Despite geopolitical caution, investor appetite for AI-linked assets and large-cap technology names remained the dominant driver behind Friday’s gains in Japanese equities, reinforcing broader expectations that artificial intelligence spending and infrastructure investment will continue shaping global capital markets in the months ahead.