Nikkei Surges To 34-Year High; Briefly Crossed The 38,000 Mark For The First Time Since 1990
Experience the latest financial milestone as the Nikkei surges to a 34-year high, driven by strong corporate earnings and tech-related shares.
Author:Rhyley CarneyReviewer:Paula M. GrahamFeb 14, 20249.3K Shares166.3K Views
Japan’s Nikkei surges to 34-year highon Tuesday, resuming trading after a long holiday weekend due to the Lunar New Year. Bolstered by strong corporate earnings and a surge in tech-related shares, the benchmark stock index witnessed a remarkable ascent, capturing global attention with its unprecedented climb.
According to reports from CNBC, the Nikkei briefly crossed the 38,000 mark for the first time since the asset bubble burst in 1990, rallying approximately 3% to achieve 34-year highs. However, the index retreated just before the close, settling at 37,963.97. Similarly, the Topix index also reached a 34-year high, climbing 2.12% to 2,612.03.
Tech Giants Are Leading The Surge
Leading the charge was chip-sector giant Tokyo Electron, which emerged as the top performer of the day, recording an astounding 13.33% gain.
SoftBank Group Corp, buoyed by the rally in semiconductor developer ARM Holding, in which it holds a 90% stake, also saw a substantial rise of 6.27%.
Other notable gainers included insurance giants Tokio Marine Holdings Inc and MS&AD Insurance Group Holdings Inc, with gains of 11% and 10.82%, respectively.
Macroeconomic Factors In Japan Equities' Positive Momentum
The positive momentum in Japanese equities was further fueled by a robust performance on Wall Street and a weakened yen, which benefits exporters by boosting the value of overseas revenue. During the session, the yen traded around 149.47 per dollar, contributing to the overall optimism among investors.
JP Morgan analysts, in a recent research note, expressed their optimism, stating, "We have raised our outlook for Japanese equities in 2024, taking into account changes in macroeconomic conditions, including the yen weakening early in the year, and progress on structural reforms."
Regional Market Trends
In the broader Asia-Pacific region, market movements varied as trading resumed after the Lunar New Year holiday. South Korea's Kospi returned to trade, closing up 1.12% at 2,649.64, with the small-cap Kosdaq rising 2.25% to finish at 845.15. However, Australia's S&P/ASX 200 slipped 0.15% to 7,603.6, marking a third consecutive day of losses.
Global Market Sentiment
With Chinese markets closed for the week due to the Lunar New Year holiday, attention shifted to global markets. In the United States, the Dow Jones Industrial Average rose to a new high on Monday, settling at 38,797.38, up 0.33%. Conversely, the S&P 500 inched lower by 0.09%, while the Nasdaq Composite slid 0.3%.
Future Outlook
Amid these dynamic market movements, Japan's Nikkei's record-breaking climb underscores the resilience and strength of the country's equity market. As investors navigate through global uncertainties, including geopolitical tensions and inflation concerns, attention remains focused on how these factors will continue to shape market dynamics in the coming weeks.
Conclusion
The surge in tech stocks and positive corporate earnings provide a glimmer of optimism amidst the volatility, with investors closely monitoring developments to inform their investment strategies moving forward.
Rhyley Carney
Author
Paula M. Graham
Reviewer
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