Nikkei Rises to 30,000 Again With The Growing Optimism About The Economy

Japan’s Nikkei index closed on Thursday above 30,000, after comments by Federal Reserve Chairman Jerome Powell indicated that interest rates would remain low for a long time.

The benchmark Nikkei index rose 1.67% to 30,168.27 points. The broader TOPIX index rose 1.22% to 1,926.23 points.

Powell told lawmakers on Wednesday that it may take more than three years to reach the central bank’s inflation targets, an indication that the Fed plans to keep interest rates unchanged for an extended period.

On Wall Street, the three major indexes closed higher, on track to record strong monthly gains, while the Dow and the S&P 500 are heading for their best monthly performance since November.

Fast retailer, operating clothing store Uniqlo, rose 1.78%, becoming the largest contributor to the Nikkei gain. SoftBank Group rose 0.28%, to become the second-largest shareholder.

Chip-related shares jumped, with Tokyo Electron gaining 1.49%, Fanuc adding 5.65%, and TDK gaining 2.36%.

Suzuki Motor’s share pressed the index, falling 3.3% after Chairman Osamu Suzuki, 91, announced his retirement.

His announcement came less than a week after the appointment of rival Honda Motor as the new CEO. Honda shares rose 1.24%.