On Friday, Japan's Nikkei 225 index surged to a historic high, driven by robust sales expectations from Amazon (AMZN.US) and Apple (AAPL.US), which boosted tech stocks. The index also recorded its largest monthly gain in three decades. Meanwhile, the yen weakened to a record low against the euro and its lowest level against the U.S. dollar since February, following cautious signals from the Bank of Japan after it kept interest rates unchanged. This currency depreciation further lifted export-heavy stocks.

The Nikkei 225 closed up 2.1% at 52,411.34, marking a new all-time closing high. For October, the index soared 16.6%, its strongest monthly performance since January 1994. The broader Topix index rose as much as 1.4% intraday, hitting a record peak of 3,348.06, before settling 0.9% higher at 3,331.83, also a historic closing high.

Amazon reported its cloud business revenue growth at the fastest pace in nearly three years, pushing its quarterly sales guidance above market expectations. Similarly, Apple CEO Tim Cook's optimistic forecasts for iPhone holiday sales and overall revenue exceeded Wall Street estimates. These strong earnings propelled Japanese semiconductor stocks, with Socionext surging nearly 17% and Advantest gaining 3.9%, the latter contributing significantly to the Nikkei's rise due to its heavy weighting. AI-related data center stocks also performed well, with Hitachi jumping 7.2%.

Tech stocks have been the primary driver of the Nikkei's rally in recent months, as global markets revive amid fervent AI optimism. Additionally, expectations of aggressive fiscal stimulus under Japan's new Prime Minister Takaichi Sanae have further buoyed the market. Mitsubishi UFJ Asset Management noted that Sanae’s policy focus includes AI innovation, suggesting Japanese tech stocks will benefit from both global trends and domestic support.

Naoya Oshikubo, Chief Market Economist at Mitsubishi UFJ Asset Management, stated that the Nikkei surpassing 52,000 points is "just a milestone in the upward trend," with room for further gains. He projected a potential 10% rise by April next year, emphasizing that "the current rally is not a bubble."