Japanese Stocks Hit Record High Amidst Foreign Investment Surge

Japanese stocks surged to a new record high on Thursday, surpassing levels last seen in 1989, as falling valuations and corporate reforms lured foreign investors seeking alternatives to turbulent Chinese markets.

The Nikkei index soared by 2.19 percent to close at 39,098.68 points, reaching an intraday peak of 39,156.97 points—exceeding both the highest closing and intraday levels ever recorded, previously set on December 29, 1989.

During the session, the index peaked at 38,957.44 points, with the highest closing at 38,915.87 points. Year-to-date, the index has surged by approximately 17 percent, building on a remarkable 28 percent increase in 2023, when it emerged as the top-performing Asian stock exchange.

The Japanese market has been propelled by robust earnings reports, a weakening yen (nearly 150 yen per dollar), and expectations of continued ultra-loose monetary policy from the Bank of Japan.

Notable contributors to the market’s rally included:

• Nvidia, whose shares surged by 6 percent following its optimistic revenue forecast for the first quarter, driven by strong demand for its dominant AI chips.
• Tokyo Electron, witnessing a 6 percent surge, significantly boosting the Nikkei index.
• Advantest, a chip testing equipment manufacturer, surged by 7.5 percent.
• Screen Holdings, with a more than ten percent rise.
• SoftBank Group, investing in artificial intelligence, saw its shares climb over five percent.

The electronic industries sector emerged as the top gainer among the 33 sector sub-indices on the Tokyo Stock Exchange, rising by 2.4 percent.

Key Points:

• Japanese stocks hit a record high, outperforming levels from 1989.
• Foreign investment flows into Japanese markets amidst instability in Chinese markets.
• Nikkei index closes at 39,098.68 points, marking a historic high.
• Strong corporate earnings, weak yen, and Bank of Japan’s monetary policy support fuel market rally.
• Notable gains seen in tech companies like Nvidia, Tokyo Electron, and SoftBank Group.
• Electronic industries sector emerges as the top gainer on the Tokyo Stock Exchange.