Nikkei: 35,000 after 34 years! Japan’s Nikkei raised hopes, know what is happening?
nikki Today: Tokyo’s Nikkei closes above 35,000 for the first time since 1990! Tokyo’s Nikkei index closed above 35,000 at the end of the trading session on Thursday, the first such occurrence in nearly 34 years, AFP reported. The surge was driven by optimistic expectations of a stronger economy, signaling a possible turnaround from decades of deflation.
Analysts noted that rallies in US technology boosted share prices, which reached the highest highs seen since Japan’s asset price bubble burst three decades ago.
The benchmark Nikkei 225 index registered a rise of 1.77 per cent or 608.14 points and closed at 35,049.86. This is the first instance since February 1990 that the index has ended a session above the 35,000 level. The broader Topics index gained 1.57 per cent, adding 38.39 points to close at 2,482.87.
Ryouta Otsuka, senior strategist at Toyo Securities, jokingly commented that the rapid pace of recent gains “deserves a speeding fine.”
He was quoted as saying that the biggest factor behind the rally is probably the hope that the Japanese economy will finally return to normal after years of deflation.
Otsuka noted that there is widespread speculation that the Bank of Japan There may be an initiative to tighten its long-term monetary easing policies as early as April.
He said the Japanese market was also being supported by gains in US tech stocks, particularly driven by chip giants. NVIDIA,
Amid Japan’s boom years from 1986 to 1990, the Nikkei achieved its all-time high of 38,915 on December 29, 1989.
Following the Plaza Accord of 1985, which was designed to weaken the dollar and reduce the US trade deficit, Japanese officials implemented easing measures to mitigate the impact of a substantial increase in the yen against the dollar.
As a result, there were significant inflows of capital into both the real estate and stock markets.
However, in 1990, the stock market experienced a sharp decline as the central bank continued to tighten its policies and the government imposed strict regulations on the real estate market. This marked the beginning of Japan’s “lost decades”, characterized by long periods of economic stagnation.
The recent surge in Japanese stocks can be attributed in part to the implementation of a redesigned tax-free government stock program for individuals, known as NISA.
The dollar maintained its strength at 145.40 yen on Thursday, while it was at 145.77 yen in New York.
Notable shares include, Sony Group rose 3.54 percent to 14,340 yen, toyota saw a rise of 3.61 percent, closing at 2,844 yen, and SoftBank Group experienced a rise of 1.92 percent, closing at 6,431 yen.
Specializing in mini cars, Suzuki A notable advance of 3.86 percent was seen, reaching 6,370 yen. The jump came after it announced a $4.2 billion investment to build a new plant in India.
Analysts noted that rallies in US technology boosted share prices, which reached the highest highs seen since Japan’s asset price bubble burst three decades ago.
The benchmark Nikkei 225 index registered a rise of 1.77 per cent or 608.14 points and closed at 35,049.86. This is the first instance since February 1990 that the index has ended a session above the 35,000 level. The broader Topics index gained 1.57 per cent, adding 38.39 points to close at 2,482.87.
Ryouta Otsuka, senior strategist at Toyo Securities, jokingly commented that the rapid pace of recent gains “deserves a speeding fine.”
He was quoted as saying that the biggest factor behind the rally is probably the hope that the Japanese economy will finally return to normal after years of deflation.
Otsuka noted that there is widespread speculation that the Bank of Japan There may be an initiative to tighten its long-term monetary easing policies as early as April.
He said the Japanese market was also being supported by gains in US tech stocks, particularly driven by chip giants. NVIDIA,
Amid Japan’s boom years from 1986 to 1990, the Nikkei achieved its all-time high of 38,915 on December 29, 1989.
Following the Plaza Accord of 1985, which was designed to weaken the dollar and reduce the US trade deficit, Japanese officials implemented easing measures to mitigate the impact of a substantial increase in the yen against the dollar.
As a result, there were significant inflows of capital into both the real estate and stock markets.
However, in 1990, the stock market experienced a sharp decline as the central bank continued to tighten its policies and the government imposed strict regulations on the real estate market. This marked the beginning of Japan’s “lost decades”, characterized by long periods of economic stagnation.
The recent surge in Japanese stocks can be attributed in part to the implementation of a redesigned tax-free government stock program for individuals, known as NISA.
The dollar maintained its strength at 145.40 yen on Thursday, while it was at 145.77 yen in New York.
Notable shares include, Sony Group rose 3.54 percent to 14,340 yen, toyota saw a rise of 3.61 percent, closing at 2,844 yen, and SoftBank Group experienced a rise of 1.92 percent, closing at 6,431 yen.
Specializing in mini cars, Suzuki A notable advance of 3.86 percent was seen, reaching 6,370 yen. The jump came after it announced a $4.2 billion investment to build a new plant in India.
