Japan’s Nikkei crosses record high after 34 years
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The news: Japan’s Nikkei 225 has reached a record intra-day high on the back of a rally in technology shares.
The numbers: The Nikkei 255 broke above its past peak in 1989, rising as much as 2% to 39,029 on Thursday.
Technology shares surged including Screen Holding, up 10%, and Tokyo Electron, which rose as much as 6.6%.
The context: Global funds have poured into Japanese equities over the past year and the weak yen offered a further tailwind which has boosted Japanese exporters, Bloomberg reported. Meanwhile, the bourse’s push to improve corporate governance is raising expectations for shareholders.
What they said: Saxo Capital Markets strategist Charu Chanana said: “After some recent consolidation, Nvidia’s earnings beat is just the perfect catalyst for Japanese equities to reach record highs”.
“And structural tailwinds from geopolitics to corporate reform, as well as a weak yen, continue to suggest that Japanese equities is a story where macro meets momentum and a peak is still rather far,” Chanana said.
The source: Bloomberg
