Japan's benchmark index, Nikkei 225 Stock Average, surpassed the threshold of 40,000 points for the first time on Monday. The index increased by nearly 1 per cent to reach 40,301.30, setting a new intraday high.
Nikkei 225 Stock Average makes history by crossing the 40,000-point threshold for the first time, driven by a surge in technology stocks
Japan's benchmark index, Nikkei 225 Stock Average, surpassed the threshold of 40,000 points for the first time on Monday. The index increased by nearly 1 per cent to reach 40,301.30, setting a new intraday high.
Technology stocks took the lead, driving the market's upward trend over the past year. Advantest Corp. stood out as one of the top performers amidst the surge, as per a report by Bloomberg.
The Topix index also witnessed an uptick, though it remains around 6 per cent lower than the peak it reached over thirty years ago.
Both the Nikkei and the Topix received a boost from US consumption data. The figures gave rise to speculation that the Federal Reserve might consider reducing interest rates as soon as June, which could positively influence global market sentiment
Last month, the Nikkei index surged to its highest level since 1989, driven by increased interest from global investors in Japan's largest corporations. This was largely fueled by shareholder returns and robust corporate earnings.
Last year, Warren Buffett's endorsement of Japanese trading houses instilled confidence in Japan's market, pushing many funds to transition into Japan due to concerns about a slowdown in China.
After reaching its milestone on February 22, the Nikkei witnessed subdued activity owing to profit bookings, although downward pressure was mitigated by investors buying on dips.
Major global asset managers such as BlackRock Inc. and Amundi Asset Management remain optimistic about Japanese stocks, foreseeing continued strength driven by earnings growth and improvements in corporate governance.