Key Points
- Nikkei225 traded at 63,233.70, up 1,161.06, or 1.87%, after reaching a session high of 63,446.70.
- Japan’s Nikkei gained 2.8%, just shy of a new record high, while Taiwan stocks rose 2.3%.
- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, while US stock futures gained 0.36% and European futures climbed 1%.
- Brent crude rose 1.9% to $104.56 a barrel, but remained on track for a 6% weekly drop, while WTI rose 1.35% to $97.64.
Asian equities rose on Friday as traders found support from NVIDIA’s earnings and cautious hopes for progress in US-Iran peace talks. The Nikkei led the region higher, gaining 2.8% and moving close to a fresh record high. Taiwan stocks rose 2.3%, while MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.8% and headed for a modest weekly gain.
On the chart, Nikkei225 traded at 63,233.70, up 1,161.06, or 1.87%, at 05/22 08:59:50 GMT+3. The session high stood at 63,446.70, with a low of 62,033.20, an open at 62,033.20, and a close at 62,072.64.
The move marks a clear reversal from the earlier tech-led pullback. Traders had trimmed exposure before NVIDIA’s results, but the chipmaker’s earnings helped restore confidence in the AI trade. US futures also rose 0.36%, while European futures gained 1%, pointing to a stronger global start.
NVIDIA Earnings Restore Confidence In Tech
NVIDIA’s results improved sentiment across AI-linked markets. The company’s earnings capped a strong run of results from large technology firms and gave traders a reason to return to chip, semiconductor equipment, and AI infrastructure names.
That directly supports Japan’s Nikkei because the index has heavy exposure to growth and technology shares. When the AI trade strengthens, Japanese chip equipment, electronics, automation, and data-centre supply chain names often gain support.
The next test is follow-through. A one-day rebound can repair sentiment, but sustained gains need traders to keep believing that AI spending can offset tighter global rates and higher energy costs. For now, NVIDIA has helped stabilise the most important part of the equity story.
Iran Talks Keep Oil And Rates In Focus
The rally still carries geopolitical risk. US Secretary of State Marco Rubio said there had been some good signs in talks to end the nearly three-month-old US-Israeli war on Iran, but differences remain over Tehran’s uranium stockpile and control of the Strait of Hormuz.
The Strait of Hormuz remains the key macro risk. Its near closure has pushed oil prices higher and changed global rate expectations because energy disruption feeds into inflation. Brent crude rose 1.9% to $104.56 a barrel on Friday, but was still set for a 6% weekly drop. US WTI gained 1.35% to $97.64.
That volatility keeps equity traders cautious. A peace breakthrough could lower oil, ease inflation pressure, and support equities. A breakdown in talks could send crude higher again and hit risk appetite, especially in energy-importing markets such as Japan.
Japan Inflation Complicates The BOJ Path
Japan’s core inflation slowed to a four-year low in April, which clouds the Bank of Japan’s next move. Core CPI rose 1.4% year-on-year, down from 1.8% in March and below the 1.7% market forecast. Fuel subsidies and a 10.6% drop in education fees helped pull inflation lower.
The underlying story is not fully soft. A BOJ-tracked measure that excludes fresh food and fuel rose 1.9% in April, while analysts expect higher energy costs from the Middle East conflict to push inflation back up. BOJ Governor Kazuo Ueda is expected to speak on June 3, ahead of the June 15 to 16 policy meeting.
That leaves the BOJ with a narrow path. Stronger-than-expected first-quarter GDP and firm April exports support the case for a hike. Lower core inflation gives policymakers room to wait. Oil prices, the yen, and wage data will decide how much pressure builds before the June meeting.
Technical Analysis
The Nikkei 225 has rebounded aggressively to around 63,234, recovering almost the entirety of last week’s pullback and moving back toward the recent peak near 63,817. The speed of the rebound suggests buyers remain firmly in control of the broader uptrend, with dip-buying activity still extremely strong across Japanese equities.
Technically, the bullish structure has reasserted itself:
- MA5: 61,709
- MA10: 62,214
- MA20: 61,347
Price is trading comfortably above all three major moving averages again, while the shorter-term averages continue sloping upward. That alignment reflects strong momentum continuation rather than simple mean reversion.
The latest candle also carries important technical implications. Buyers defended the prior correction zone near 60,900–61,300, then pushed the index sharply higher with expanding bullish momentum. That suggests the recent selloff was largely corrective rather than the start of a larger reversal.
Key levels to watch:
- Immediate resistance: 63,800
- Major resistance: 64,900 → 65,000
- Support: 62,200 → 61,300
- Major support: 60,900 → 58,400
The 63,817 high remains the critical breakout level. A decisive daily close above that zone would likely open the door toward the psychological 65,000 handle, especially if global risk sentiment remains constructive.
Fundamentally, the Nikkei continues benefiting from several powerful macro drivers:
- Persistent yen weakness supporting exporters
- Strong global AI and semiconductor demand
- Foreign institutional inflows into Japanese equities
- Improved corporate governance and shareholder return expectations
The rebound in semiconductor-linked stocks has been particularly supportive for the index. Japanese technology and industrial names remain heavily tied to the broader AI infrastructure cycle, especially through exposure to chip manufacturing equipment and supply chains.
From a momentum perspective, the Nikkei now appears to be entering another breakout attempt phase rather than exhaustion. The index has formed a series of higher lows since early April, while repeatedly testing the upper resistance band.
Cautious Forecast
Nikkei225 keeps a bullish short-term bias while it holds above 62,214.39 and 61,709.37. A break above 63,817.47 would support a move toward 64,942.66, especially if Nvidia-led AI momentum continues and US-Iran talks reduce oil volatility.
A break below 61,347.11 would weaken the rebound and suggest traders are fading the latest tech-led rally. The strongest upside path needs three signals to align: AI earnings momentum stays firm, Brent remains below recent stress levels despite trading near $104.56, and USD/JPY avoids a disorderly move through 160.
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Trader Questions
Why Did The Nikkei 225 Rise Today?
The Nikkei 225 rose as Nvidia’s earnings restored confidence in AI and semiconductor stocks. Nikkei225 traded at 63,233.70, up 1,161.06, or 1.87%, after reaching a session high of 63,446.70.
What Is The Current Nikkei225 Price?
Nikkei225 traded at 63,233.70. The session high was 63,446.70, with a low of 62,033.20, an open at 62,033.20, and a close at 62,072.64.
Why Are Asian Stocks Rising?
Asian stocks are rising as traders respond to stronger AI earnings, better technology sentiment, and hopes for progress in US-Iran peace talks. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, while Taiwan stocks gained 2.3%.
How Did Nvidia Earnings Affect The Nikkei?
Nvidia earnings lifted the Nikkei by improving sentiment toward AI, chip, and data-centre supply chain stocks.
Japan’s market has heavy exposure to semiconductor equipment, electronics, automation, and technology names, so stronger Nvidia results helped buyers return.
Why Is The Nikkei Close To A Record High?
The Nikkei is close to a record high because AI optimism, strong technology earnings, and improved risk appetite have pulled traders back into Japanese equities. The Nikkei gained 2.8%, placing it just shy of a new record high.
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