Japanese Nikkei Index Hits Highest Level in Over 30 Years

The Japanese Nikkei index reached its highest level since February 1990 on Thursday, supported by a weakening yen that benefited companies exporting their products. Additionally, concerns about the Bank of Japan’s interest rate hike eased after data showed a decline in wage growth.

The “Nikkei” index rose by 1.77 percent for the third consecutive day this week and closed at its highest level in about 34 years at 35049.86 points. The index is also poised to record its biggest weekly gain since late March 2020.

The Topix index, the broader range, rose by 1.57 percent to end the session at 2482.87 points.

Data published yesterday showed that real wages for workers contracted for the twentieth consecutive month in November, which has alarmed officials who want to monitor wage growth before tightening monetary policy.

The yen depreciated by 0.9% against the US dollar last night following the data, hovering around 145.52 in Asian trading.

The depreciation of the yen supports the stocks of companies that export their products, as it increases the value of their profits recorded abroad when they repatriate them to Japan.

As Japanese stocks received a boost from good performance, stocks of companies with large market capitalization on Wall Street also witnessed it.

The share of SMC increased by 4.69 percent, making it the top gainer on Thursday. It was followed by the share of Itoshu Corp, which increased by 4.5 percent, and K.D.D.I Communications, whose share increased by 4.21 percent.

Sony’s stock saw a rise of 3.54 percent, while Suzuki Motor’s increased by 3.86 percent.

As for the companies that witnessed the highest percentage losses in their stocks, they are: Yamato Holdings, whose share declined by 3.85 percent, Rakuten Group by 2.44 percent, and Tokyo Gas by 1.43 percent. (Reuters)