{"id":127871,"date":"2026-06-03T09:31:00","date_gmt":"2026-06-03T05:31:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=127871"},"modified":"2026-06-03T09:23:38","modified_gmt":"2026-06-03T05:23:38","slug":"nikkei-rockets-to-record-high-on-japans-19-5b-stimulus-ai-rally-powers-asia-higher-despite-fresh-iran-strikes","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/nikkei-rockets-to-record-high-on-japans-19-5b-stimulus-ai-rally-powers-asia-higher-despite-fresh-iran-strikes\/06\/03\/market-updates\/","title":{"rendered":"Nikkei Rockets to Record High on Japan&#8217;s $19.5B Stimulus: AI Rally Powers Asia Higher Despite Fresh Iran Strikes"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nikkei hits all-time high:<\/strong> Japan&#8217;s benchmark jumped nearly 3% to a record 68,645.5 points; TOPIX hit a peak of 3,996.22.<\/li>\n\n\n\n<li><strong>Japan stimulus approved:<\/strong> The cabinet approved a 3.11 trillion yen ($19.5 billion) supplementary budget to tackle high living costs from the Iran war.<\/li>\n\n\n\n<li><strong>Consumption tax cut coming:<\/strong> PM Takaichi is set to decide on a consumption tax cut this month.<\/li>\n\n\n\n<li><strong>Wall Street record lead-in:<\/strong> The S&amp;P 500 eked out a record high overnight on tech and chip strength; S&amp;P 500 futures steadied in Asian trade.<\/li>\n\n\n\n<li><strong>Fresh U.S.-Iran strikes:<\/strong> The two sides traded another round of airstrikes late Tuesday \u2014 yet markets largely shrugged it off.<\/li>\n\n\n\n<li><strong>Iran talks appear to have collapsed:<\/strong> Reports earlier this week showed Tehran backing out of indirect communication with Washington.<\/li>\n\n\n\n<li><strong>Oil prices spike:<\/strong> Crude jumped on the latest strikes, but Asian markets were largely undeterred.<\/li>\n\n\n\n<li><strong>Australia ASX 200 rises 0.8%:<\/strong> Softer-than-expected Q1 GDP reduced rate hike fears, supporting stocks.<\/li>\n\n\n\n<li><strong>RBA on hold:<\/strong> The central bank signaled caution on further tightening after 75 basis points of hikes this year.<\/li>\n\n\n\n<li><strong>China advances:<\/strong> CSI 300 rose 1.6% and Shanghai Composite gained 0.6%.<\/li>\n\n\n\n<li><strong>Singapore gains:<\/strong> Straits Times Index rose 0.7%.<\/li>\n\n\n\n<li><strong>Hang Seng outlier:<\/strong> The index slid nearly 2% as investors booked profits in local tech heavyweights after Tuesday&#8217;s strong gains.<\/li>\n\n\n\n<li><strong>India underperforms:<\/strong> Nifty 50 fell 0.7% on high oil prices and limited AI exposure, approaching a two-month low.<\/li>\n<\/ul>\n\n\n\n<p>Asian stocks rose on Wednesday as strength in tech and persistent optimism over artificial intelligence helped markets largely look past more strikes between the United States and Iran.<\/p>\n\n\n\n<p>Japan&#8217;s Nikkei 225 was the best performer in the region, hitting a record high on a rally in local tech and industrial names. Local markets were also encouraged by Tokyo doling out more fiscal measures to support the economy.<\/p>\n\n\n\n<p>Regional markets took a positive lead-in from Wall Street, which eked out record highs overnight on continued strength in tech and chipmaking names. S&amp;P 500 futures steadied in Asian trade.<\/p>\n\n\n\n<p>Asian markets were undeterred by a spike in oil prices after the U.S. and Iran traded a fresh round of airstrikes late Tuesday. Peace negotiations between the two appeared to have fallen through after reports earlier this week showed Iran backing out of indirect communication with the United States.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nikkei Soars to Record High on More Japanese Stimulus<\/h2>\n\n\n\n<p>The Nikkei 225 jumped nearly 3% to a record high of 68,645.5 points, while the TOPIX hit a peak of 3,996.22 points.<\/p>\n\n\n\n<p>Local markets were boosted by expectations of more stimulus, after Japan&#8217;s cabinet approved a draft supplementary budget of 3.11 trillion yen ($19.5 billion) to help tackle high living costs stemming from the Iran war.<\/p>\n\n\n\n<p>Prime Minister Sanae Takaichi&#8217;s government hopes to secure parliamentary approval for the budget by Friday, with the measure aimed chiefly at continued subsidies on gas.<\/p>\n\n\n\n<p>Takaichi was also set to decide on a consumption tax cut this month.<\/p>\n\n\n\n<p>The prospect of more fiscal support for the economy boosted Japanese stocks, with tech and chip shares leading gains on continued optimism over the AI boom.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Australia Stocks Rise as Soft GDP Diminishes Rate Hike Bets<\/h2>\n\n\n\n<p>Australia&#8217;s ASX 200 rose 0.8% after first-quarter gross domestic product data read slightly weaker than expected.<\/p>\n\n\n\n<p>While the print showed some resilience in household spending, other factors \u2014 chiefly rising fuel costs and weather-related disruptions in mining \u2014 weighed on growth in the first quarter.<\/p>\n\n\n\n<p>Still, the print furthered the notion that the Reserve Bank of Australia will keep interest rates on hold in the coming months, amid caution over a further cooling in growth. The central bank had signaled as much during its last meeting, after it hiked rates by a cumulative 75 basis points so far this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Broader Regional Picture<\/h2>\n\n\n\n<p>Broader Asian markets were largely upbeat. China&#8217;s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1.6% and 0.6%, respectively.<\/p>\n\n\n\n<p>Singapore&#8217;s Straits Times Index rose 0.7%.<\/p>\n\n\n\n<p>Hong Kong&#8217;s Hang Seng was an outlier, sliding nearly 2% after a strong performance in the prior session. Investors were seen locking in profits in local tech heavyweights that had clocked strong gains on Tuesday.<\/p>\n\n\n\n<p>Indian markets continued underperforming, with the Nifty 50 index down 0.7% at the open. Concerns over high oil prices and a lack of AI exposure pushed the Nifty close to a two-month low this week.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nikkei hits all-time high: Japan&#8217;s benchmark jumped nearly 3% to a record 68,645.5 points; TOPIX hit a peak of 3,996.22. Japan stimulus approved: The cabinet approved a 3.11 trillion yen ($19.5 billion) supplementary budget to tackle high living costs from the Iran war. Consumption tax cut coming: PM Takaichi is set to decide &hellip;<\/p>\n","protected":false},"author":9,"featured_media":31994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,39,36],"tags":[6849,6851],"class_list":["post-127871","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-global-stock-markets","category-market-updates","tag-asia","tag-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=127871"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127871\/revisions"}],"predecessor-version":[{"id":127872,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127871\/revisions\/127872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31994"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=127871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=127871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=127871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}