{"id":63286,"date":"2026-06-17T00:38:15","date_gmt":"2026-06-17T04:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/"},"modified":"2026-06-17T00:38:15","modified_gmt":"2026-06-17T04:38:15","slug":"global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/","title":{"rendered":"Global Markets Surge: Nikkei Hits Record Highs as Investors Embrace &#8216;US Exceptionalism&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#Record_Gains_in_Tokyo_Following_Geopolitical_Relief\" >Record Gains in Tokyo Following Geopolitical Relief<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#AI_Valuations_Defended_Amid_Frothy_Market_Concerns\" >AI Valuations Defended Amid &#39;Frothy&#39; Market Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#The_Return_of_the_Bullish_Dollar_Trade\" >The Return of the Bullish Dollar Trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#Corporate_Moves_Xiaohongshu_and_Volkswagen\" >Corporate Moves: Xiaohongshu and Volkswagen<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-nikkei-hits-record-highs-as-investors-embrace-us-exceptionalism\/63286\/#Regional_Developments_and_Bond_Markets\" >Regional Developments and Bond Markets<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Nikkei 225 (<a href=\"\/stock\/JP225\">JP225<\/a>) hits a historic milestone<\/strong>, surpassing the <strong>69,000<\/strong> and <strong>70,000<\/strong> levels for the first time, fueled by a landmark <strong>U.S.-Iran peace framework<\/strong> and strong export data.<\/li>\n<li><strong>Schroders (<a href=\"\/stock\/SDR\">SDR<\/a>) CIO Johanna Kyrklund<\/strong> dismisses &quot;bubble&quot; fears in the AI sector, citing robust cash flows and the successful <strong>$1.75 trillion SpaceX IPO<\/strong> as evidence of fundamental support.<\/li>\n<li><strong>The &quot;US Exceptionalism&quot; trade returns<\/strong> with speculators flipping to net long positions on the <strong>US Dollar<\/strong>, driven by the American economy&#39;s relative resilience and the ongoing AI-led tech boom.<\/li>\n<li><strong>Xiaohongshu targets a $70 billion valuation<\/strong> for its upcoming Hong Kong IPO, signaling a major revival for Chinese tech listings after years of regulatory scrutiny.<\/li>\n<li><strong>Volkswagen (<a href=\"\/stock\/VOW3\">VOW3<\/a>) implements a &quot;sealed bid&quot; process<\/strong> for the <strong>$10 billion sale<\/strong> of its engine business to ensure transparency and avoid conflicts of interest during the massive divestment.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Record_Gains_in_Tokyo_Following_Geopolitical_Relief\"><\/span>Record Gains in Tokyo Following Geopolitical Relief<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Japanese stock market reached unprecedented heights on Wednesday, as the <strong>Nikkei 225 (<a href=\"\/stock\/JP225\">JP225<\/a>)<\/strong> briefly touched <strong>70,020<\/strong> before settling at a record close. The rally was ignited by news of a framework agreement between the <strong>United States<\/strong> and <strong>Iran<\/strong> to end their armed conflict, a development that significantly lowered the geopolitical risk premium on global energy supplies.<\/p>\n<p>Market sentiment was further bolstered by the <strong>Bank of Japan (BoJ)<\/strong>, which raised its policy rate to <strong>1.0%<\/strong>\u2014a 31-year high. While interest rate hikes typically pressure equities, investors viewed the move as a vote of confidence in the Japanese economy. <em>Strong export growth of 17% in May<\/em>, particularly in the automotive and semiconductor sectors, provided the fundamental backdrop for the surge.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AI_Valuations_Defended_Amid_Frothy_Market_Concerns\"><\/span>AI Valuations Defended Amid &#39;Frothy&#39; Market Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite recent volatility, <strong>Schroders (<a href=\"\/stock\/SDR\">SDR<\/a>)<\/strong> Chief Investment Officer <strong>Johanna Kyrklund<\/strong> stated that AI and tech giants are not currently in a &quot;bubble situation.&quot; Kyrklund noted that while some &quot;frothiness&quot; exists, the sector is supported by massive earnings and the ability of &quot;hyperscalers&quot; like Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>) and Alphabet (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) to fund infrastructure through internal cash flow.<\/p>\n<p>The successful <strong>$1.75 trillion IPO of SpaceX<\/strong> last week has served as a litmus test for investor appetite. Analysts pointed out that unlike the dot-com era, current tech leaders are delivering tangible returns on investment, with companies like Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>) maintaining dominant positions in the global AI supply chain.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Return_of_the_Bullish_Dollar_Trade\"><\/span>The Return of the Bullish Dollar Trade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are aggressively piling back into the <strong>US Dollar<\/strong>, marking the return of the &quot;US Exceptionalism&quot; trade. Speculators have pivoted from bearish to net long positions as the U.S. economy continues to outperform global peers. <em>Foreign ownership of U.S. equities has climbed to nearly 20%<\/em>, reflecting a massive capital rotation back into dollar-denominated assets.<\/p>\n<p>This resurgence comes as the <strong>Federal Reserve<\/strong> maintains a cautious stance on inflation, which accelerated to <strong>4.2%<\/strong> in May. The combination of higher-for-longer interest rates and the U.S. lead in the artificial intelligence revolution has made the greenback the preferred destination for global capital seeking both growth and safety.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Moves_Xiaohongshu_and_Volkswagen\"><\/span>Corporate Moves: Xiaohongshu and Volkswagen<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the private markets, Chinese social media giant <strong>Xiaohongshu<\/strong> (known as RedNote) is reportedly preparing a <strong>Hong Kong IPO<\/strong> for late 2026. The company is seeking a valuation exceeding <strong>$70 billion<\/strong>, a significant jump from its previous private valuation of $50 billion. With projected profits of <strong>$3 billion<\/strong> for 2026, the listing is expected to be one of the largest in the region in years.<\/p>\n<p>Meanwhile, <strong>Volkswagen (<a href=\"\/stock\/VOW3\">VOW3<\/a>)<\/strong> has opted for a highly structured &quot;sealed bid&quot; auction for its <strong>$10 billion engine unit sale<\/strong>. The German automaker is seeking to streamline its operations toward electric vehicles while avoiding the internal conflicts that have historically plagued its large-scale divestments.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regional_Developments_and_Bond_Markets\"><\/span>Regional Developments and Bond Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>European Union<\/strong> has announced an emergency <strong>\u20ac50 million ($58 million)<\/strong> trade relief package for <strong>Armenia<\/strong> following a series of Russian import bans. The move is seen as an effort to stabilize the Armenian economy as it seeks closer ties with the West. In the fixed-income markets, <strong>Japan\u2019s 5-year JGB yield<\/strong> declined to <strong>1.865%<\/strong>, reflecting a &quot;bull-flattening&quot; of the curve as inflation fears eased following the Middle East peace news.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nikkei 225 (JP225) hits a historic milestone, surpassing the 69,000 and 70,000 levels for the first time, fueled 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