https://t.co/Einely7Y9l May 7, 2026 [Nikkei Average Soars Unbounded: The Shock of Kioxia HD Hits Limit Up] (Market Broadcast [Daily Delivery]) Kuraoka Kei’s ASK1 #AI Summary Nikkei Average Approaching 63,000 and Semiconductor Market Surge 🔳 Today’s Japanese Market The Nikkei Average rose 3,320 yen to 62,833, the TOPIX gained 111 points, and the Growth 250 also advanced, resulting in a broad-based, strong rally across Japanese equities. 🔳 Underlying Drivers U.S. equities rose on expectations of an end to the Iran conflict and strong earnings reports from major corporations, with the S&P 500 and Nasdaq reaching new highs—this momentum spilled over into Japan’s market, fueling buying interest. 🔳 Nikkei Average’s Sharp Surge During Japan’s holiday period, U.S. tech stocks surged significantly; Japanese markets quickly absorbed those gains, pushing the Nikkei Average briefly above 63,000 for the first time in history. 🔳 Signs of Overheating and SQ Factors The Nikkei Average is now more than 10% above its 25-day moving average, suggesting an overbought condition. However, supply-demand dynamics ahead of options settlement (SQ) may have further supported the index’s rise. 🔳 Exchange Rates and Interest Rates USD/JPY traded around 156 yen; despite intervention, the fundamental drivers of yen depreciation remain unchanged, making future stabilization levels a key focus. U.S. 10-year Treasury yields eased slightly to the lower 4% range. 🔳 U.S. Tech Stocks The Nasdaq and S&P 500 were strong, with notable gains in semiconductor and data center-related stocks such as AMD, SanDisk, Western Digital, Corning, Intel, and Arm. 🔳 Kioxia’s Momentum Kioxia hit a limit-up with proportional allocation, showing such strength that a move into the ¥50,000 range—following its previous ¥40,000 breakout—is now within sight. 🔳 Broadening Semiconductor Rally Buying extended across a wide range of semiconductor-related stocks including Tokyo Electron, Disco, RS Technology, Rohto, Alback, Ferrotec, Japan Electronic Materials, Tokyo Ohka Kogyo, Optrel, and Daifuku. 🔳 Undervalued Candidates Dai Nippon Printing, despite exposure to semiconductor masks and glass substrate materials, trades at a relatively low P/E ratio and is seen as a potential candidate for reassessment due to its relative underperformance. 🔳 SoftBank Group SoftBank Group’s asset value rose significantly due to Arm’s sharp rally, while expectations around OpenAI further bolstered investor sentiment. 🔳 Wiring and Data Center-Linked Stocks Furukawa Electric, Sumitomo Electric Industries, and Fujikura were strong, supported by sustained high copper prices for data center copper foil; Mitsui Metal and JX Metal also rose sharply. 🔳 Individual Material Stocks Daikin was lifted by demand for data center cooling and air conditioning systems, as well as activist investor activity. Murata Manufacturing reached highs on upgraded ratings and strong demand for multilayer ceramic capacitors. 🔳 Ibiden and Related Stocks Ibiden hit a limit-up after reports that Apple is considering shifting manufacturing orders from Intel and Samsung; buying spilled over to packaging substrate-related stocks such as Meiko and Kitagawa Seiki. 🔳 Physical AI-Linked Stocks FANUC, Yaskawa Electric, and Mitsubishi Electric continue to show strong performance under the “Physical AI” theme in robotics and factory automation. ListItemIcon Defense and Financial Stocks Defense stocks like Mitsubishi Heavy Industries and Kawasaki Heavy Industries were relatively sluggish; IHI shows signs of a potential bottom but requires earnings confirmation. Megabanks and Tokyo Marine saw buying on dips amid expectations of rate hikes and perceived undervaluation. 🔳 Market Outlook If U.S. earnings strength and stabilization in Iran’s situation shift sentiment toward a fundamentals-driven rally, Japanese equities could sustain their upward trajectory—marking the start of a potentially unlimited upside.