Gotrade News - SoftBank Group surged past Toyota to become Japan's most valuable company on Monday as the Nikkei crossed 67,000 for the first time. South Korea's KOSPI also hit a record high, lifted by chip stocks tied to artificial intelligence demand.
The rally reflects intensifying investor conviction that AI infrastructure spending will keep driving Asian tech earnings. Regional benchmarks tracked Wall Street's Friday gains and shrugged off lingering uncertainty over a U.S.-Iran peace deal.
Key Takeaways
- SoftBank jumped over 13% to a record, lifting its market cap to roughly 48 trillion yen.
- The Nikkei 225 topped 67,000 for the first time, with SoftBank contributing 618 of 709 index points.
- South Korea's KOSPI surged nearly 5% to a record 8,874.16 as Samsung and SK Hynix rallied on AI demand.
According to Investing.com, SoftBank shares climbed more than 13% to 8,546 yen, pushing its valuation to a peak of 48 trillion yen, or about $305.8 billion. The move dethroned Toyota, whose market capitalisation shrank to roughly 45.7 trillion yen after the automaker slid 4.8% on the same session.
The conglomerate's rally centers on its 90% stake in Arm Holdings (ARM), whose chip designs underpin a new wave of AI processors. Arm shares have more than tripled in 2026, extending strong gains posted over the previous two years.
AI Infrastructure Bets Drive Conviction
As reported by Reuters via Investing.com, Nvidia (NVDA) recently unveiled new processors built on Arm's platform for Windows devices co-developed with Microsoft. The launch could deliver substantial licensing revenue for the British chip designer over coming quarters.
SoftBank also pledged 75 billion euros, equivalent to about $87.3 billion, to build out AI infrastructure across France over the next five years. The commitment lands on top of strong gains the company recently booked on its OpenAI investment stake.
"Given the current expectations for expanding demand for AI servers, buying interest is spreading to overlooked artificial intelligence stocks," a Nomura Securities strategist said in the Reuters report. SoftBank shares are now up more than 80% for the year through this period.
The breadth of buying signals that the AI trade is widening beyond the largest names. Among the Tokyo Stock Exchange's 33 industry groups, eight rose on Monday, led by a 4.3% jump in IT firms.
KOSPI Hits Record as Asia Tech Outperforms
Per Investing.com, South Korea's KOSPI surged nearly 5% to a record high of 8,874.16, with memory chip giants Samsung Electronics and SK Hynix both jumping close to 10%. LG Electronics outperformed broader gains with a rally of nearly 30%.
The Korean tape highlights how regional suppliers to Taiwan Semiconductor (TSM) and Nvidia are absorbing fresh AI capex commitments. A mildly softer-than-expected U.S. inflation reading on Friday also tempered fears over the macro impact of the Iran conflict.
Not every market joined the move higher. China's CSI 300 and Shanghai Composite fell 1% and 0.4%, respectively, after weekend PMI data showed manufacturing growth cooling in May.
The divergence underscores how the AI capex theme, rather than broad cyclical strength, is doing the heavy lifting for Asian equities. Investors will watch upcoming Japanese and Korean tech earnings to gauge whether the rally has further to run.
Sources
- Softbank hits record high on AI boom, overtakes Toyota as Japan's biggest company (Investing.com)
- Japan's Nikkei tops 67,000 for first time on AI boost; SoftBank becomes Japan's most valuable firm (Reuters via Investing.com)
- Asia stocks rise as AI cheer offsets Iran deal uncertainty; KOSPI hits record high (Investing.com)
- EM Stocks Hit Record High on AI; Currencies Lower as Oil Climbs (Bloomberg)
