“Nikkei Hits Highest Level in 34 Years as Chip Stocks Soar”

The Japanese index “Nikkei” reached its highest level in 34 years on Thursday, with chip-related stocks rising in line with their counterparts on Wall Street, which also gained at the end of yesterday’s session.

The “Nikkei” index reached a level that is only 800 points, or about two percent, below its all-time high recorded in 1989, which was considered the peak of what is known as the “bubble economy” in Japan.

On Thursday, “Nikkei” concluded, rising by 1.21 percent to reach 38,157.94 points, which is the highest closing level since January 1990. It also recorded the highest level during a trading day in 34 years at 38,188.74 points.

The weakening of the yen, which boosts exporters’ profits, supported the “Nikkei” index amid continued expectations of monetary easing policy, after Japan unexpectedly slipped into recession at the end of last year.

The chip-linked stocks provided significant support to the “Nikkei” index, following the impact of the Philadelphia Semiconductor Index which jumped 2.2% at the end of yesterday’s session, surpassing the gains of the three main indexes on Wall Street.

Tokyo Electron, a giant chip manufacturing equipment company, boosted the Nikkei index by 168 points after it jumped 5%. Additionally, Softbank Group’s stock in the field of artificial intelligence surged by 3.59%, pushing the index up by 59 points.

The yen fell below the 150-dollar level this week, providing broad support as the currency weakness enhances the value of overseas revenues and makes products more competitive. (Reuters)