The Japanese stock index “Nikkei” reaches its highest level in 34 years and closes.

The Japanese index “Nikkei” closed at its highest level in 34 years on Thursday, rising more than two percent. This came after a senior official at the Bank of Japan indicated that any tightening of monetary policy would be gradual.

The “Nikkei” index ended the session with a 2.06% increase at 36863.28 points, marking its highest closing level since February 1990, when the so-called “Bubble Economy” in the country had just begun to deflate. The Deputy Governor of the Bank of Japan, Shinichi Oshida, stated in a speech delivered during the mid-morning trading session that conditions are favorable for exiting the extensive stimulus policies.

However, he added that even if the Bank of Japan were to end its negative interest rate policy, it is difficult to envision a trajectory in which interest rates would continue to rise swiftly.

The yen depreciated against its major counterparts, providing an additional boost to the “Nikkei” index, which is composed of a large number of exporting companies. A weaker currency amplifies the value of external revenues and makes products more competitive.

Shares of chip companies weighted on “Nikkei” benefited from gains in American semiconductor companies during the night hours, as Tokyo Electron and Advantest shares rose by 3.35 percent and 7.56 percent respectively.
The index received a boost from the surge of SoftBank Group’s stock, which focuses on artificial intelligence. The stock gained 11.06 percent after ARAM Holding Company predicted that sales and profits would exceed market expectations.
The stock of Kyowa Kirin Pharmaceuticals was the biggest percentage gainer on the “Nikkei” index, surging by 19.38 percent after the announcement of a share repurchase.
On the other hand, Shimizu Corp’s stock declined by 16.15% following the announcement of its financial results. (Reuters)