Japan's Nikkei closed above the key 60,000 mark for the first time today as optimism over corporate earnings overshadowed concerns about the Middle East conflict.
The benchmark Nikkei 225 Index rose 1.38% to finish the session at an unprecedented 60,537. The Nikkei has gained 18.6% so far this year.
Shares of factory automation provider Keyence and industrial robot maker Fanuc surged by their daily trading limit, nearly 16%, to lead gains in the Nikkei after both firms reported better-than-expected profit after the bell on Friday.
"Stocks related to earnings announcements, as well as AI and semiconductor-related shares, led the market higher at the open," said Maki Sawada, an equities strategist at Nomura Securities.
"This week will see a steady stream of earnings reports from major companies in both Japan and the US, so market attention will naturally gravitate toward those results," the strategist said.
"Since 60,000 is a psychological milestone, many investors are likely keeping an eye on that level, so profit-taking could manifest around that range," she added.
The Nikkei fell into negative territory shortly after the open, but then rallied sharply following an Axios report that Iran has given the US a new proposal to end their war. Discussions to settle the two-month-long conflict were stalled over the weekend.
There were 94 advancers in the Nikkei index against 130 decliners. SMC was among the top gainers, rising 7.1%, after Reuters reported that activist fund Palliser Capital had made a "significant" investment in the factory automation company.
