Japan’s Nikkei breaks key 50,000 level ahead of Trump meeting

The gauge gained as much as 2.4% Monday to 50,491.23, with some defense companies and chip-related shaThe gauge gained as much as 2.4% Monday to 50,491.23, with some defense companies and chip-related shares leading the advance, and shipbuilders seeing gains. res leading the advance, and shipbuilders seeing gains.

The blue-chip Nikkei 225 Stock Average surpassed the psychologically key level of 50,000 for the first time as investor sentiment was boosted by growth optimism under Japan’s new prime minister and easing US-China frictions.

The gauge gained as much as 2.4% Monday to 50,491.23, with some defense companies and chip-related shares leading the advance, and shipbuilders seeing gains. The country’s first female premier, Sanae Takaichi, who has pledged to bolster national security, is set to meet with US President Donald Trump on Tuesday.

Investors are also awaiting results from firms including Advantest Corp. as the reporting season picks up. Shares of the world’s largest maker of chip testers jumped as much as 5.6%, one of the top gainers on the Nikkei.

“The mere fact that the Nikkei has crossed the 50,000 milestone could be a factor driving the strength in equities,” said Kohei Onishi, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.

That said, “with the focus likely to move to corporate earnings next week, investors may turn more cautious and take a wait-and-see approach in the latter half of the week,” Onishi added.

In addition to domestic corporate earnings, investors will be closely watching results and investment plans from US tech giants this week, given that the Nikkei’s recent rise was driven by the rally in artificial intelligence-related stocks, he said.

The Nikkei has surged more than 24% this year, outperforming a 15% gain in the S&P 500, as foreign inflows, easing tariff concerns between the US, and optimism for growth under Takaichi have helped spur equity benchmarks to fresh records.