TMN - Asia-Pacific

Nikkei Hits Record High on Bank and Tech Stock Triumph

On Thursday, the Nikkei 225 achieved a historic peak, driven by solid earnings and investor-friendly measures, with banking, tech rallies, and consumer stocks leading the remarkable momentum in Japanese equities.

Japan’s index rose by 2.19% to ¥39,098.91 (or $260.04) per share in the closed session, while its futures ending in March climbed by 1.06% to ¥39,180.00 (or $260.78) apiece.

According to reports, the recent data surpassed its previous record high reached in 1989 of ¥38,915.87 ($259.02) a share.

Meanwhile, the Nikkei and the broader Topix have excelled in the Asia Pacific region, boasting over 10% gains this year following a remarkable 25.00% surge in 2023, marking their most substantial annual increases in over a decade.

Furthermore, Bank of America (BofA) strategists raised their year-end 2024 Nikkei forecast to ¥41,000 ($272.90) from the previous ¥38,500 ($256.26), citing robust third-quarter corporate earnings from Japan Inc.

However, the surge is bolstered by a weaker yen, down over -6.00% against the dollar this year and poised to approach the 33-year lows seen in late 2023.

Meanwhile, last week, Nikkei disclosed that the net profits of publicly listed Japanese companies might achieve a record peak for the third consecutive fiscal year ending March 2024.

Analysts attribute this to record-breaking quarterly earnings from October to December, surging by 45.00% year-on-year (YoY) and surpassing consensus estimates by 14.00%.

Nvidia Success Push Nikkei to Strike Record Peak

Nvidia’s recent gains and beating market anticipation have led Nikkei to hit its 34-year record success.

Japan’s leading index has risen by 52.00% since January 2023, boosted by tech momentum, corporate governance shifts, increased profits for exporters, and a weak yen.

Nvidia’s stock jumped 6.00% following its projection of fiscal first-quarter revenue surpassing expectations, driven by strong demand for its leading artificial intelligence (AI) chips.

Meanwhile, a senior market expressed that this heralds a new era for traders, signaling an escape from deflation and unveiling a fresh world.

Moreover, some traders bet on the Nikkei to continue its upward rally.

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