Nikkei 225 Surged to Record High Driven By Rebound In AI-Related Stocks and Easing Oil Prices

Stocks in Tokyo advanced, reversing losses in the previous two sessions, tracking gains in overnight trading in New York. 

The Nikkei 225 Stock Average soared more than 4%, the broader TOPIX gained 1.6%, and the Japanese yen traded at 161.80 against the U.S. dollar. 

The U.S.-based Micron Technology reported solid quarterly results and issued a better-than-expected sales outlook, driving semiconductor-related stocks higher in Tokyo. 

Micron Technology's strong results reinforced optimism around the artificial intelligence sector, and Japanese equipment and component makers are well-positioned to benefit from the global expansion of AI infrastructure.

Market sentiment was further bolstered by the steady decline in crude oil prices for the fourth day in a row. 

Brent crude prices decreased 1.5% to $72.44 a barrel, driven by optimism over the apparent progress in U.S.-Iran peace talks. 

Commercial shipments in the Strait of Hormuz increased as more tankers successfully navigated the narrow passageway, delivering crude oil to global markets and alleviating concerns for Japan's import-dependent economy. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average surged 4.4% to 72,238.55, and the broader TOPIX also gained 1.6%, reaching 4,025.47. 

SoftBank Group, Tokyo Electron, Kioxia Holdings, Advantest Corp., Taiyo Yuden, and Murata Manufacturing jumped between 5% and 9%. 

Sumitomo Mitsui Financial Group advanced 0.4% to ¥6,378.0, Mitsubishi UFJ Financial gained 1.3% to ¥3,248.0, and Mizuho Financial inched higher 0.5% to ¥7,758.0. 

China's Indexes Diverged In Cautious Trading, Oil Approached Pre-War Levels

China's benchmark indexes diverged, and investors stayed on the sidelines in Hong Kong. 

The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index gained 1.6% as investors debated the outlook for AI infrastructure investing. 

Semiconductor and electronic component makers surged following the release of the U.S.-based Micron Technology's financial results and sales outlook. 

Micron's better-than-expected demand outlook supported another increase in semiconductor-related stocks and a 4% surge in benchmark indexes in Tokyo and Seoul. 

The People's Bank of China announced plans to introduce an overnight reverse repo operation, following up remarks by Governor Pan Gongsheng at the Lujiazui Forum. 

The central bank announced that it will roll out the new facility by the end of June, marking a step toward more flexible liquidity management.

China Indexes and Stocks 

The Hang Seng Index decreased 1.4% to 23,090.27, and the mainland-focused CSI 300 Index added 1.6% to 5,022.46. 

Brent crude oil prices dropped 1.6% to $72.59 a barrel, extending losses for the fourth consecutive day and nearly erasing all gains made since the start of the Middle East war, as the progress in US-Iran peace talks improved the supply outlook. 

Financial services stocks came under pressure for the second week in a row. 

The Industrial and Commercial Bank of China decreased 2.2%, the Agriculture Bank of China declined 2.9%, and the China Construction Bank fell 1.4%. 

China's Indexes Diverged In Cautious Trading, Oil Approached Pre-War Levels

China's benchmark indexes diverged, and investors stayed on the sidelines in Hong Kong. 

The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index gained 1.6% as investors debated the outlook for AI infrastructure investing. 

Semiconductor and electronic component makers surged following the release of the U.S.-based Micron Technology's financial results and sales outlook. 

Micron's better-than-expected demand outlook supported another increase in semiconductor-related stocks and a 4% surge in benchmark indexes in Tokyo and Seoul. 

The People's Bank of China announced plans to introduce an overnight reverse repo operation, following up remarks by Governor Pan Gongsheng at the Lujiazui Forum. 

The central bank announced that it will roll out the new facility by the end of June, marking a step toward more flexible liquidity management.

China Indexes and Stocks 

The Hang Seng Index decreased 1.4% to 23,090.27, and the mainland-focused CSI 300 Index added 1.6% to 5,022.46. 

Brent crude oil prices dropped 1.6% to $72.59 a barrel, extending losses for the fourth consecutive day and nearly erasing all gains made since the start of the Middle East war, as the progress in US-Iran peace talks improved the supply outlook. 

Financial services stocks came under pressure for the second week in a row. 

The Industrial and Commercial Bank of China decreased 2.2%, the Agriculture Bank of China declined 2.9%, and the China Construction Bank fell 1.4%. 

U.S. Stocks Struggled After Chip Sell-Off and Oil Prices Extended 3-Day Decline

U.S. stocks attempted to rebound from steep losses in the previous session, and investors awaited the release of quarterly results of key technology companies. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.4% ahead of the quarterly results from Micron Technology. 

U.S. West Texas Intermediate crude oil prices slipped 2.1% to $71.66 a barrel, and Brent crude oil prices fell 2.3% to $73.45 a barrel amid easing of tensions in the Strait of Hormuz. 

Memory makers rebounded following sharp losses in Tuesday's selling, which set off a global rout in semiconductor- and AI-related stocks. 

Markets in Japan declined 0.9% but rebounded 3.1% in South Korea and traded around the flatline in London and Paris. 

Benchmark indexes in Germany dropped more than 1%, driven by sharp losses in defense-related stocks. 

German lawmakers are looking to cancel a multi-billion euro project to build six F126 frigates, according to a report by the Financial Times.

U.S. Movers 

FedEx decreased 6.7% to $295.25 after the parcel delivery company reported its results for the fiscal fourth quarter ending in May.

Revenue increased to $25.0 billion from $22.2 billion, net income edged lower to $1.60 billion from $1.65 billion, and diluted earnings per share eased to $6.60 from $6.88 a year ago. 

The company completed the spinoff of FedEx Freight on June 1, and the freight company paid a cash dividend of $4.1 billion to FedEx Corporation. 

During fiscal 2026, FedEx returned approximately $2.2 billion to stockholders through the combination of $776 million of stock repurchases and $1.4 billion of dividend payments. 

As of the end of May, $1.3 billion remained available under the company's 2024 stock repurchase authorization. 

FedEx estimated revenue to decline 11% and diluted earnings per share from continuing operations to range between $16.55 and $17.75 for the calendar year 2026.

KB Home increased 3.4% to $54.59 after the home builder released its fiscal second quarter results. 

Revenue declined 27% to $1.1 billion from $1.5 billion, net income dropped to $27.4 million from $107.9 million, and diluted earnings per share eased to 43 cents from $1.50 a year ago. 

In the period, the company delivered 2,395 homes, a decrease of 23%, and the average home selling price eased to $461,900 from $488,700 a year ago, respectively.

The company's net new orders in the quarter totaled 3,317, a decrease of 4%; backlog at the end of the quarter fell 5% to 4,526; and backlog value fell 7% to $2.2 billion. 

The cancellation rate as a percentage of gross orders was 12%, compared to 16%.

For the fiscal third quarter, the company estimated total home deliveries to range between 2,600 and 2,800 and housing revenue to range between $1.20 billion and $1.35 billion. 

U.S. Stocks Struggled After Chip Sell-Off and Oil Prices Extended 3-Day Decline

U.S. stocks attempted to rebound from steep losses in the previous session, and investors awaited the release of quarterly results of key technology companies. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.4% ahead of the quarterly results from Micron Technology. 

U.S. West Texas Intermediate crude oil prices slipped 2.1% to $71.66 a barrel, and Brent crude oil prices fell 2.3% to $73.45 a barrel amid easing of tensions in the Strait of Hormuz. 

Memory makers rebounded following sharp losses in Tuesday's selling, which set off a global rout in semiconductor- and AI-related stocks. 

Markets in Japan declined 0.9% but rebounded 3.1% in South Korea and traded around the flatline in London and Paris. 

Benchmark indexes in Germany dropped more than 1%, driven by sharp losses in defense-related stocks. 

German lawmakers are looking to cancel a multi-billion euro project to build six F126 frigates, according to a report by the Financial Times.

U.S. Movers 

FedEx decreased 6.7% to $295.25 after the parcel delivery company reported its results for the fiscal fourth quarter ending in May.

Revenue increased to $25.0 billion from $22.2 billion, net income edged lower to $1.60 billion from $1.65 billion, and diluted earnings per share eased to $6.60 from $6.88 a year ago. 

The company completed the spinoff of FedEx Freight on June 1, and the freight company paid a cash dividend of $4.1 billion to FedEx Corporation. 

During fiscal 2026, FedEx returned approximately $2.2 billion to stockholders through the combination of $776 million of stock repurchases and $1.4 billion of dividend payments. 

As of the end of May, $1.3 billion remained available under the company's 2024 stock repurchase authorization. 

FedEx estimated revenue to decline 11% and diluted earnings per share from continuing operations to range between $16.55 and $17.75 for the calendar year 2026.

KB Home increased 3.4% to $54.59 after the home builder released its fiscal second quarter results. 

Revenue declined 27% to $1.1 billion from $1.5 billion, net income dropped to $27.4 million from $107.9 million, and diluted earnings per share eased to 43 cents from $1.50 a year ago. 

In the period, the company delivered 2,395 homes, a decrease of 23%, and the average home selling price eased to $461,900 from $488,700 a year ago, respectively.

The company's net new orders in the quarter totaled 3,317, a decrease of 4%; backlog at the end of the quarter fell 5% to 4,526; and backlog value fell 7% to $2.2 billion. 

The cancellation rate as a percentage of gross orders was 12%, compared to 16%.

For the fiscal third quarter, the company estimated total home deliveries to range between 2,600 and 2,800 and housing revenue to range between $1.20 billion and $1.35 billion. 

Japan's Indexes Extended 3-Day Losses Tracking Global Weakness In AI Stocks

Japan's benchmark indexes dropped for the second consecutive session amid growing concerns over heavy AI spending by hyperscalers. 

The Nikkei 225 Stock Average decreased 0.5%, the TOPIX dropped 0.4%, and the Japanese yen weakened to 161.65 against the U.S. dollar.

Major market indexes faced additional headwinds following significant losses in overnight trading in New York. 

Microsoft, Tesla, Alphabet, Meta Platforms, Apple, SanDisk, and Micron Technology declined between 2% and 13% amid lingering worries that the elevated level of spending for AI infrastructure is not sustainable. 

Market sentiment was further dented amid growing questions about Alphabet, SpaceX, and Oracle seeking funding from bond investors, exhausting their annual income, and lukewarm interest from equity investors. 

Moreover, Japan may have to seek alternative sources for rare-earth minerals, as shipments from China plunged to a one-year low in May. 

In the immediate future, Japanese companies are facing difficulties in getting licenses to import rare earth magnets, raising supply chain disruption worries. 

China's rare-earth magnet shipments to Japan totaled 123 metric tons, a sharp decline of 34.6% from April, according to a report by Japan's Yomiuri Shimbun quoting a Chinese customs agency. 

China imposed dual export controls on shipments of rare-earth minerals—including terbium, yttrium, and dysprosium—amid worsening diplomatic relations between Beijing and Tokyo. 

The persistent delay in Chinese export licenses is beginning to worry Japan's automakers, machine manufacturers, and electronics producers. 

The customs data showed that China halted all shipments of tungsten carbide for the fourth month in a row in May, a critical material used in metalworking, precision machinery, and automobile components.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.5% to 69,456.36, and the TOPIX dropped 0.4% to 3,973.21.

AI- and semiconductor-linked stocks led the decliners in Tokyo on Wednesday. 

Furukawa Electric, Fujikura, Sumitomo Electric, Disco Corp., and Tokyo Electron dropped between 2% and 4%. 

Japan's Indexes Extended 3-Day Losses Tracking Global Weakness In AI Stocks

Japan's benchmark indexes dropped for the second consecutive session amid growing concerns over heavy AI spending by hyperscalers. 

The Nikkei 225 Stock Average decreased 0.5%, the TOPIX dropped 0.4%, and the Japanese yen weakened to 161.65 against the U.S. dollar.

Major market indexes faced additional headwinds following significant losses in overnight trading in New York. 

Microsoft, Tesla, Alphabet, Meta Platforms, Apple, SanDisk, and Micron Technology declined between 2% and 13% amid lingering worries that the elevated level of spending for AI infrastructure is not sustainable. 

Market sentiment was further dented amid growing questions about Alphabet, SpaceX, and Oracle seeking funding from bond investors, exhausting their annual income, and lukewarm interest from equity investors. 

Moreover, Japan may have to seek alternative sources for rare-earth minerals, as shipments from China plunged to a one-year low in May. 

In the immediate future, Japanese companies are facing difficulties in getting licenses to import rare earth magnets, raising supply chain disruption worries. 

China's rare-earth magnet shipments to Japan totaled 123 metric tons, a sharp decline of 34.6% from April, according to a report by Japan's Yomiuri Shimbun quoting a Chinese customs agency. 

China imposed dual export controls on shipments of rare-earth minerals—including terbium, yttrium, and dysprosium—amid worsening diplomatic relations between Beijing and Tokyo. 

The persistent delay in Chinese export licenses is beginning to worry Japan's automakers, machine manufacturers, and electronics producers. 

The customs data showed that China halted all shipments of tungsten carbide for the fourth month in a row in May, a critical material used in metalworking, precision machinery, and automobile components.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.5% to 69,456.36, and the TOPIX dropped 0.4% to 3,973.21.

AI- and semiconductor-linked stocks led the decliners in Tokyo on Wednesday. 

Furukawa Electric, Fujikura, Sumitomo Electric, Disco Corp., and Tokyo Electron dropped between 2% and 4%. 

China's Rare-Earth Squeeze Raises Tensions with Japan

Benchmark indexes in China hugged the flatline amid a lack of fresh market-moving news. 

The Hang Seng Index traded around the flatline, and the mainland-focused CSI 300 Index inched higher 0.1%. 

Investors remained on the sidelines following last week's mixed economic data, lack of corporate news, and another down day in AI- and semiconductor-linked stocks. 

In overnight trading in New York, the S&P 500 index decreased 1.4%, and the tech-dominated Nasdaq Composite declined 2.2%, driven by sharp losses in Nvidia, Alphabet, Meta, Tesla, Microsoft, and Amazon. 

In addition, rising tensions between Japan and China kept market enthusiasm in check. 

China's shipments of rare-earth magnets in May fell to the lowest level since May 2025, when Beijing imposed its global export control regime. 

The tighter export control has effectively halted shipments of certain tungsten products, terbium, yttrium, and dysprosium, triggered by diplomatic disputes over Taiwan. 

The shipments of rare-earth minerals have dropped as much as 80% from a year ago, disrupting supply chains for automobile and technology product makers and prompting efforts to diversify sourcing.

China Indexes and Stocks 

The Hang Seng Index increased a fraction to 23,344.67, and the mainland-focused CSI 300 Index added 0.1% to 4,925.42.

Knowledge Atlas Technology advanced 5.5% to HK$2,290.0, and the AI model maker rebounded from sharp losses in the previous session. 

AI- and semiconductor-linked stocks struggled to advance amid a lack of market-moving news and weakness in tech stocks in overnight trading in New York. 

NAURA Technology gained 3% to ¥769.94, SMIC jumped 8.4% to HK$84.40, and Foxconn Interconnect Technology advanced 1.7% to HK$7.66. 

China's Rare-Earth Squeeze Raises Tensions with Japan

Benchmark indexes in China hugged the flatline amid a lack of fresh market-moving news. 

The Hang Seng Index traded around the flatline, and the mainland-focused CSI 300 Index inched higher 0.1%. 

Investors remained on the sidelines following last week's mixed economic data, lack of corporate news, and another down day in AI- and semiconductor-linked stocks. 

In overnight trading in New York, the S&P 500 index decreased 1.4%, and the tech-dominated Nasdaq Composite declined 2.2%, driven by sharp losses in Nvidia, Alphabet, Meta, Tesla, Microsoft, and Amazon. 

In addition, rising tensions between Japan and China kept market enthusiasm in check. 

China's shipments of rare-earth magnets in May fell to the lowest level since May 2025, when Beijing imposed its global export control regime. 

The tighter export control has effectively halted shipments of certain tungsten products, terbium, yttrium, and dysprosium, triggered by diplomatic disputes over Taiwan. 

The shipments of rare-earth minerals have dropped as much as 80% from a year ago, disrupting supply chains for automobile and technology product makers and prompting efforts to diversify sourcing.

China Indexes and Stocks 

The Hang Seng Index increased a fraction to 23,344.67, and the mainland-focused CSI 300 Index added 0.1% to 4,925.42.

Knowledge Atlas Technology advanced 5.5% to HK$2,290.0, and the AI model maker rebounded from sharp losses in the previous session. 

AI- and semiconductor-linked stocks struggled to advance amid a lack of market-moving news and weakness in tech stocks in overnight trading in New York. 

NAURA Technology gained 3% to ¥769.94, SMIC jumped 8.4% to HK$84.40, and Foxconn Interconnect Technology advanced 1.7% to HK$7.66. 

Space Exploration Technology Corp, or SpaceX, surged 19% to $160.95 in Friday's trading after the company completed its initial public offering at $135 per share and sold 555.6 million shares, raising $75 billion. 

The largest ever U.S. initial public offering attracted strong interest from retail investors, and the public offering was oversubscribed by four times. 

On Monday, SpaceX's stock increased 5% to $169.31, despite growing calls from analysts warning that the company's current business fundamentals, near-term revenue growth, and lack of profitability point to substantially lower valuations. 

SpaceX's successful public offering highlights the investor demand for high-growth and high-risk companies that are leading innovation in space and Internet technologies.

CarMax Inc. increased 3.6% to $54.00 after the automotive retailer reported its results for the fiscal first quarter ending in May. 

Revenue increased 6.2% to $8.0 billion from $7.5 billion, net income decreased to $185.6 million from $210.4 million, and diluted earnings per share eased to $1.31 from $1.38 a year ago. 

Retail used unit sales increased slightly, and comparable store used unit sales declined 0.8%; gross profit per retail used unit eased to $2,177 from the last year's record high of $2,407, reflecting the downward pricing trend over the last four quarters.

Total retail used vehicle revenues increased 4.7% compared to a year ago, driven by an increase in the average retail selling price of approximately $1,200 per unit, or 4.5%. 

Total wholesale vehicle unit sales increased 8.4% from a year ago to 162,064; total wholesale revenue increased 14%, driven by an increase in units sold and a 5.1% increase in unit price, or $400 per unit.

Bayerische Motoren Werke AG dropped 6.7% to €63.38 in Frankfurt trading after the company issued a profit warning. 

The company said profit before tax for the fiscal year 2026 is likely to be "significantly lower" than the previous year, compared to the previous estimate of a "moderate decrease."

"The BMW Group expects the automotive free cash flow to be above €2.5 billion, the dividend payout ratio of 30% to 40% of net income attributable to BMW AG shareholders, and the third share buyback program that is currently running to both remain unchanged," the company said in a statement released to investors. 

Accenture plc dropped 11.5% to $140.30 after the information technology service company reported results for the fiscal third quarter ending in May. 

Revenue increased 6% to $18.7 billion from $17.7 billion, net income edged up $2.4 billion from $2.2 billion, and diluted earnings per share advanced to $3.80 from $3.49 a year ago. 

Fiscal fourth-quarter revenue is to range between $17.75 billion and $18.4 billion, and it tightened its full-year revenue growth estimate to between 3% and 4% from the previous range between 3% and 5%. 

The company reiterated its free cash flow estimate between $10.8 billion and $11.5 billion and tightened the diluted earnings per share range between $13.38 and $13.50 from the previous estimate between $13.25 and $13.50.

Tech Sell-Off On Wall Street Intensified In Tuesday's Trading

Stocks in New York continued their downward slide for the second session in a row as the sell-off in tech stocks intensified. 

The S&P 500 Index decreased 1.4%, and the tech-heavy Nasdaq Composite declined 2.8%, driven by losses in memory-related stocks. 

On Monday's trading, the S&P 500 index closed down 0.4%, and the tech-heavy Nasdaq Composite dropped 1.3% following larger losses in Alphabet and SpaceX. 

On Monday, tech stocks came under pressure, and SpaceX plunged 16% after the company announced a $20 billion bond offering, and Alphabet Inc. dropped 5% after another leading AI researcher announced they would leave for a rival. 

Monday's losses kicked off a global sell-off, with the benchmark index in South Korea plunging 10% and the Nikkei 225 stock average dropping 3.6% at the close of regular trading on Tuesday. 

The global rout in memory stocks reverberated to stocks in Europe and New York. 

In New York, Micron Technology dropped 10%, SanDisk declined 9%, while electronic component maker Seagate decreased 7%, and AMD and Intel fell around 6%. 

In Europe, Infineon Technologies declined 6%, ASML Holding fell 4.8%, and STMicroelectronics dropped 7.7%.

Benchmark indexes in Germany fell 1.3%, in Italy declined 1.4%, and in France decreased 0.8%. Market indexes in London fell 0.4% as traders grappled with yet another premature departure of the UK's prime minister. 

U.S. Movers 

The earnings calendar is likely to dominate trading later in the week, amid an intensifying sell-off in semiconductor- and AI-related stocks. 

Kon Ferry, FedEx, and Carnival are scheduled to release their quarterly updates later today, and Micron Technology, Darden Restaurants, Winnebago, and BlackBerry are scheduled to release their results on Wednesday. 

SpaceX rebounded as much as 2.6% to $158.59 in early trading on Tuesday after the technology-focused company lost altitude in two previous sessions. 

Tech Sell-Off On Wall Street Intensified In Tuesday's Trading

Stocks in New York continued their downward slide for the second session in a row as the sell-off in tech stocks intensified. 

The S&P 500 Index decreased 1.4%, and the tech-heavy Nasdaq Composite declined 2.8%, driven by losses in memory-related stocks. 

On Monday's trading, the S&P 500 index closed down 0.4%, and the tech-heavy Nasdaq Composite dropped 1.3% following larger losses in Alphabet and SpaceX. 

On Monday, tech stocks came under pressure, and SpaceX plunged 16% after the company announced a $20 billion bond offering, and Alphabet Inc. dropped 5% after another leading AI researcher announced they would leave for a rival. 

Monday's losses kicked off a global sell-off, with the benchmark index in South Korea plunging 10% and the Nikkei 225 stock average dropping 3.6% at the close of regular trading on Tuesday. 

The global rout in memory stocks reverberated to stocks in Europe and New York. 

In New York, Micron Technology dropped 10%, SanDisk declined 9%, while electronic component maker Seagate decreased 7%, and AMD and Intel fell around 6%. 

In Europe, Infineon Technologies declined 6%, ASML Holding fell 4.8%, and STMicroelectronics dropped 7.7%.

Benchmark indexes in Germany fell 1.3%, in Italy declined 1.4%, and in France decreased 0.8%. Market indexes in London fell 0.4% as traders grappled with yet another premature departure of the UK's prime minister. 

U.S. Movers 

The earnings calendar is likely to dominate trading later in the week, amid an intensifying sell-off in semiconductor- and AI-related stocks. 

Kon Ferry, FedEx, and Carnival are scheduled to release their quarterly updates later today, and Micron Technology, Darden Restaurants, Winnebago, and BlackBerry are scheduled to release their results on Wednesday. 

SpaceX rebounded as much as 2.6% to $158.59 in early trading on Tuesday after the technology-focused company lost altitude in two previous sessions.