Japan's Nikkei share gauge surged past the 72,000 mark for the first time on Monday, on continued euphoria over AI investment and some progress in the U.S.-Iran peace talks.
A joint statement by Qatar and Pakistan, mediators in the negotiations, said the U.S. and Iran agreed to a roadmap toward a final deal within 60 days.
The benchmark Nikkei 225 advanced 1.55% to close at 72,353.96, after touching an intraday record peak of 72,831.73. The broader Topix gained 1.24% to 4,095.05.
Japanese Prime Minister Sanae Takaichi's administration plans to set a target of about 370 trillion yen ($2.29 trillion) in public and private investment in strategic sectors including AI and chips by 2040, the Nikkei reported on Friday.
"AI-related companies are once again playing a leading role in driving the market," said Wataru Akiyama, an equities strategist at Nomura Securities.
There are signs the Nikkei is "overheating," Akiyama cautioned.
The gauge climbed for an eighth-straight session, its longest winning streak in more than three years. A technical indicator, known as the 14-day relative strength index, for the Nikkei stood at 73, above the 70-mark indicating that shares may have risen too fast and are poised for a reversal.
There were 137 advancers in the Nikkei 225 against 85 decliners.
J.Front Retailing was among the leaders, surging 15.9% after activist investor 3D Investment Partners said it took a 5.10% stake in the department store operator.
Shares in Toto soared 11% to a record after the Nikkei said on Sunday that the bathroom fixtures maker will invest 80 billion yen over the next five years in its semiconductor manufacturing equipment components business.
Taiyo Yuden, down 9.14%, and Tokyo Electric Power , 7.10% lower, were the largest losers.
