Japan's stock market achieved a historic milestone on Monday, breaching the 72,000 point barrier for the first time, as fervent investment in artificial intelligence (AI) overshadowed uncertainties surrounding US-Iran peace talks.

The Nikkei 225 index climbed 1.4% in morning trading to 72,247.21 points, having earlier reached an intraday record high of 72,269.64. The broader Topix index also advanced, rising 1.1% to 4,089.59 points.

Market sentiment was further buoyed by a report from the Nikkei newspaper on Friday, which detailed Japan's plan to set a target for combined public and private investment totaling approximately $2.3 trillion across 17 strategic sectors by 2040. This initiative forms part of Prime Minister Sanae Takaichi's new growth strategy.

The market's upward trajectory continued following statements from Qatar and Pakistan, the mediators in the US-Iran peace negotiations, indicating that talks were progressing and would continue after a tense initial phase.