The Nikkei index closed higher for the eighth day

The Japanese Nikkei index closed higher on Monday, extending its gains for the eighth consecutive session, at a time when investors continue to buy local stocks with discounted prices, amid optimism about companies’ efforts to enhance investor returns.

The Nikkei index reversed course, jumping 0.9 percent to 31,086.82 points, its highest close since July 1990, and its longest winning streak since April 2023.

The broader Topix index rose 0.66 percent to 2,175.90 points.

The Nikkei index hit a 33-year high on Friday, supported by continued improvement in shareholder returns, strong expectations and a weaker yen.

“The Nikkei index’s gains accelerated in the afternoon session, most likely because foreign investors tried to buy more Japanese stocks,” said Chihiro Ota of SMBC Securities.

“But the market may have peaked and may have paused its gains somewhat in the short term due to concerns surrounding the US debt ceiling negotiations,” he added.

The insurance sector topped the gaining sub-sectors, jumping 2.35 percent. The airlines and railways sectors also rose 2.21 percent and 1.62 percent, respectively.