The Nikkei 225 stock index rose to the 68,000-yen level on Friday, driven by heavy buying in AI and semiconductor stocks [2].

This recovery signals a stabilization of investor confidence in Tokyo, as the market reacts to both geopolitical shifts in the Middle East and positive momentum from U.S. equity markets.

The index saw an intraday gain of more than 1,100 yen [1]. This surge followed a positive trend from the previous day, July 9, when the Nikkei average rose by approximately 900 yen [1].

Market participants said the rise was supported by a calming of oil-futures prices. This stability occurred after President Donald Trump denied a renewed combat stance with Iran [2].

"Market participants believe that because President Trump denied the resumption of full-scale combat with Iran, crude oil futures prices have settled, and a wide range of issues are rising in the Tokyo market," market participants said [2].

The combination of lower energy price volatility and a positive spill-over from U.S. markets encouraged investors to pivot back toward high-growth sectors. AI and semiconductor companies led the buying spree, a trend that helped the index reclaim its 68,000-yen position [2].

The Nikkei 225 rose, recovering to the 68,000-yen level.

The Nikkei's recovery highlights the high sensitivity of Japanese equities to U.S. geopolitical rhetoric and energy costs. By linking the index's performance to President Trump's comments on Iran and the strength of U.S. tech stocks, the market demonstrates that semiconductor and AI growth remains dependent on global stability and American market trends.