Japan’s benchmark Nikkei 225 climbed above the 40,000-point threshold on Friday for the first time in five months, buoyed by a broad advance in semiconductor and other technology shares. The index rose as much as 648 points in morning trade before ending the session up 566.21 points, or 1.4%, at 40,150.79—its highest close since late January. The latest surge extends Thursday’s rally, when the gauge reclaimed 39,000 for the first time since February on the back of a strong finish on Wall Street. Overnight, the Dow Jones Industrial Average gained more than 400 points and the tech-heavy Nasdaq set a new 2025 high, while the Philadelphia Semiconductor Index also advanced, spurring demand for chipmakers in Tokyo. Market sentiment was further supported by expectations that the Federal Reserve will start cutting interest rates later this year and by signals from the White House that looming July deadlines for reciprocal U.S. tariffs could be pushed back. The easing of tariff and Middle East geopolitical worries prompted investors to cover short positions and pour fresh funds into Japanese equities. Tokyo Stock Exchange data show roughly 62% of Prime-listed stocks rose, with electric-equipment and transport-equipment makers among the best performers. JPX Chief Executive Hiromi Yamaji said both foreign and domestic investors are increasingly viewing Japan as an attractive market, underscoring the shift in capital flows that has helped propel the Nikkei back toward record territory.