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On Monday, the Nikkei Stock Average closed at an all-time high of over 40,000 yen on the back of solid technology stocks, reaching a milestone just over a week after hitting a 34-year high.
The Nikkei Stock Average (225 stocks) rose 198.41 points (0.50%) from Friday to end at 40,109.23, after hitting an intraday high of 40,314.64.
The broader Topix index fell 3.14 points, or 0.12%, to 2,706.28.
The Nikkei Stock Average, the benchmark, has been at 1,000 points since February 22nd, when it broke its all-time high set in 1989, attracting domestic and foreign investment on the back of strong corporate profits, low interest rates, and expectations for the economy to overcome deflation. It has increased more than that.
Tokyo’s financial data screen shows that on March 4, 2024, the closing price of the 225 stocks in the Nikkei Stock Average was 40,109.23 yen. (Kyodo News)
In the top-tier prime market, precision equipment and mining-related stocks led the rising stocks, while shipping stocks and rubber products stocks led the declining stocks.
The Nikkei Stock Average passed the 40,000 yen milestone, although it gave up some gains in the afternoon as technology stocks such as Tokyo Electron and Advantest soared, following their U.S. counterparts in anticipation of strong demand for artificial intelligence. remained exceeded.
Analysts say foreign investors have continued to buy Japanese stocks, seeing them as cheap compared to stocks in other markets.
Seiichi Suzuki, chief stock market analyst at Tokai Tokyo Research, said, “The market rose on buying in undervalued large-cap stocks, but at the same time semiconductor-related stocks rose even further supported by the strength of their U.S. peers. ” he said. Institute.
According to brokers, the 40,000 yen mark is likely a reflection of the strong performance of Japanese companies, but given the rapid rise in the Nikkei Stock Average, it is doubtful that it will be able to maintain its upward momentum in the short term. It is said that it is unclear.
Japan’s stock market fell into a long-term slump after hitting an all-time high of 38,915.87 yen at the end of 1989, during the bubble economy when Japan’s assets ballooned.
The index closed at an all-time low of 7,054.98 in March 2009, following the collapse of the bubble economy in the early 1990s and the global financial crisis triggered by the bankruptcy of US investment bank Lehman Brothers Holdings.
Stock prices have regained their upward momentum on the back of the Bank of Japan’s aggressive monetary easing based on the economic stimulus plan “Abenomics” promoted by the late Prime Minister Shinzo Abe.
In the foreign exchange market on Monday, there was little trading incentive, with the US dollar barely moving in the Tokyo market at around the low 150 yen level.
As of 5 p.m., the dollar exchange rate was 150.30-32 yen; as of 5 p.m. Friday, the dollar was 150.08-18 yen in New York, and 150.49-50 yen in Tokyo.
The euro was trading at 1.0853-0854 dollars and 162 yen-64-74 yen in New York late Friday afternoon, and in Tokyo at 1.0811-0813 dollars and 162 yen 70-74 yen.
The yield on the benchmark 10-year Japanese government bond fell 0.005 percentage point from Friday’s close to 0.710%.
Related coverage:
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