Japanese stocks closed at a fresh record high on Thursday, surpassing levels last seen in 1989, as low valuations and corporate reforms attracted foreign money seeking alternatives to battered Chinese markets.
The Nikkei index closed up 2.19 percent at 39,098.68 points, having earlier reached 39,156.97 points, surpassing its highest closing level and the highest intraday level ever recorded on Dec. 29, 1989.
The previous high of the index during the day was 38957.44 points and the highest close was at 38915.87 points.
For us traders, this marks the beginning of a new era, said Tsutomu Yamada, chief market analyst at Okabocom Securities in Tokyo. The stock market seems to be telling us that we have finally escaped deflation and that a new world has opened up.
The index is up about 17 percent this year after rising 28 percent in 2023, when the Japanese index became the best-performing Asian stock market.
The market has benefited since the start of 2024 from a strong earnings season, a weaker yen that has returned to near 150 yen per dollar, and expectations that the Bank of Japan will stick to ultra-easy monetary policy for some time.
Nvidia shares rose 6 percent on Wednesday after it forecast higher-than-expected fiscal first-quarter revenue on strong demand for its chips that dominate the artificial intelligence market.
Tokyo Electron jumped 6 percent, giving the Nikkei the biggest boost, while chip testing equipment maker Advantest rose 7.5 percent.
Screen Holdings rose more than 10 percent, while SoftBank Group Corp, which invests in artificial intelligence, rose more than 5 percent.
The electronics sector rose 2.4 percent, the biggest gainer among the Tokyo Stock Exchange's 33 sector sub-indices.
