Nikkei Index Reaches Highest Level in 34 Years

On Monday, the Japanese Nikkei index reached its highest level in 34 years, boosted by the record closing of the Standard & Poor’s index on Friday, which lifted investor morale despite continued signs of frenzied activity in the Asian market.

After starting the session with a sharp increase, the Nikkei index slightly declined in the morning session before rising in late trading by up to 1.69% to reach 36,571.8 points, a level not seen since February 1990. The index closed higher by 1.62% at 36,546.95 points.

A total of 207 stocks listed on the index increased, out of a total of 225, while 17 stocks declined and one remained stable. Additionally, all sub-indices saw an increase, with the real estate and technology sectors performing the best.

On Friday, the Standard and Poor’s index recorded its highest closing in two years, as the fever of artificial intelligence led to significant gains in chip stocks and other heavy-weight technology stocks. Super Micro Computer, a server manufacturing company, raised its profit expectations.

In Japan, the stock of SoftBank Group, which invests in AI startups, rose by 2.41%, while the stock of Advantest Corporation, a chip testing equipment manufacturer that includes Nvidia among its clients, rose by 3.52%.

The Nikkei index has risen by 9.2 percent since the beginning of the year, surpassing its competitors in advanced markets, many of which are in a negative region.
However, analysts have warned of a possible decline as technical indicators suggest that the market is experiencing excessive trading activity.

Japanese stocks received an additional boost this year due to diminishing bets on an imminent end to the Bank of Japan’s stimulus policy, especially after the devastating earthquake that struck the country’s western coast on New Year’s Day.

The central bank is scheduled to announce its new policy tomorrow, Tuesday.
(reuters)