Nikkei surges over 3% on tech stock rally

Japan's Nikkei index on the Tokyo Stock Exchange surged more than 3% on May 26, marking a significant gain led by technology stocks.

According to Kyodo News, the rally reflects investor optimism toward the tech sector, which is benefiting from global demand for semiconductors and advanced electronic products.

Analysts said the positive performance in Japan's stock market was also supported by expectations that accommodative monetary policy would continue, as well as the recovery of the Asian regional economy.

During the session, major tech stocks such as Tokyo Electron and Advantest posted impressive gains, helping lift the Nikkei to its highest level in weeks.

Experts believe the rally could continue in the near term if macroeconomic conditions and corporate earnings remain favorable.