^{Photo: The Economic Times}

Japan’s Nikkei 225 index climbed to a historic high of 44,251.65 on Thursday, lifted by a strong rally in heavyweight SoftBank Group and upbeat global sentiment on easing inflation and potential U.S. rate cuts. The index’s fresh milestone mirrored overnight gains on Wall Street, where cooling inflation data boosted expectations that the Federal Reserve could ease monetary policy sooner than expected.

SoftBank Steals the Spotlight

SoftBank Group was the clear driver of Tokyo’s market surge, soaring almost 10% and marking its second consecutive day of sharp gains. The rally came after reports that OpenAI struck a massive $300 billion, five-year cloud-computing deal with Oracle—a deal that investors quickly linked to SoftBank’s growing involvement in cutting-edge AI projects.

The connection is no coincidence. Oracle and SoftBank are both tied to the high-profile Stargate program, a U.S.-backed $500 billion initiative unveiled in January by President Donald Trump. The program was announced alongside OpenAI’s Sam Altman, Oracle co-founder Larry Ellison, and SoftBank’s Masayoshi Son, signaling a new era of large-scale AI infrastructure partnerships.

Analysts note that SoftBank’s momentum is being fueled not only by these global AI initiatives but also by renewed investor confidence in the company’s vast tech portfolio. “Expect a nice bump higher for SoftBank as investors join the dots between Oracle’s cloud outlook and its strategic ties to Son’s vision,” said Andrew Jackson, head of Japanese equity strategy at ORTUS Advisors.

Oracle’s Cloud Boom Adds Fuel

Oracle’s strong performance has amplified excitement across Asian markets. The U.S. cloud giant reported explosive demand, projecting $18 billion in cloud infrastructure revenue for fiscal 2026 and forecasting even bigger leaps—$32 billion, $73 billion, $114 billion, and $144 billion annually over the next four years. Oracle’s stock surged nearly 36% in U.S. trading, sending ripples across global tech-linked equities, with SoftBank emerging as a top beneficiary in Asia.

Broader Nikkei Performance

Beyond SoftBank, energy and utilities stocks contributed to the Nikkei’s rally. Mitsui Mining and Smelting advanced more than 5%, while electrical components maker Fujikura added about 4%. However, not all of Tokyo’s market was in positive territory—the Topix index slipped 0.24%, reflecting broader investor caution.

Mixed Market Picture Across Asia

Elsewhere in the region, performance was uneven:

• South Korea’s Kospi gained 0.65%, with the Kosdaq climbing 0.39%, as investors cheered steady tech demand.
• Australia’s S&P/ASX 200 dipped 0.19%, pressured by mining and banking stocks.
• Hong Kong’s Hang Seng Index slid 1.19%, while the Hang Seng Tech Index retreated 1.3% amid ongoing weakness in Chinese tech giants.
• The mainland’s CSI 300 slipped 0.15%, reflecting tepid sentiment in China’s equity market.

Wall Street’s Overnight Boost

The Nikkei’s surge also reflected optimism carried over from the U.S. markets. The S&P 500 closed at 6,532.04, up 0.3%, hitting another all-time high after briefly touching 6,555.97 intraday. The Nasdaq Composite inched up 0.03% to 21,886.06, also setting a record close despite a late pullback.

The Dow Jones Industrial Average, however, fell 220.42 points (0.48%) to 45,490.92, dragged down by Apple’s disappointing performance following the lukewarm reception of its latest iPhone release.

What’s Next?

Investors across Asia remain focused on the upcoming U.S. consumer inflation data, which could offer more clarity on whether the Fed will move toward rate cuts. For now, Japan stands out as a clear winner, with the Nikkei setting records and SoftBank reclaiming center stage in the global AI-driven investment story.