Japan's Nikkei 225 index rallied 4.6% on Thursday to a fresh record high, bringing its year-to-date gain to 43.8% in local-currency terms and far outpacing the S&P 500's 7.5% climb. The rally has been fueled by Japan's exit from deflation, giving companies pricing power, along with a pro-business government under Prime Minister Sanae Takaichi and massive U.S. spending on artificial intelligence. Memory-products company Kioxia has skyrocketed about 895% this year, while Tokyo Electron shares have jumped 119.5%. The iShares MSCI ACWI ex-U.S. ETF has surged 12.6% this year, with Japan representing its largest geographical exposure at 13.8% as of June 24.
Kioxia Holdings CorporationKioxia skyrocketed 895% this year, driven by AI-related demand for memory products
TE Connectivity LtdTokyo Electron shares jumped 119.5% amid massive U.S. spending on AI, boosting demand for its semiconductor equipment
Compass Inc