Ten Months After Hitting 30,000, the Nikkei Index crosses 40,000

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On Monday, Japan's benchmark Nikkei index broke through the 40,000 mark for the first time, spurred by gains on Wall Street. Shortly after the opening bell, the Nikkei surged by 0.84 percent, or 334.87 points, reaching 40,245.69, while the broader Topix index climbed by 0.30 percent, or 8.07 points, hitting 2,717.49. The dollar stood at 150.04 yen, slightly down from 150.11 yen in New York on Friday.

Since last year, Tokyo and other major global shares have seen steady gains, with analysts anticipating further growth for the Nikkei, driven by rallying Wall Street, robust corporate earnings, and promising advancements in AI technologies.

Stephen Innes of SPI Asset Management highlighted the favourable conditions in global equity markets, citing record highs in various indexes like the MSCI World, Japanese Nikkei 225, Nasdaq, and S&P 500. He attributed this positive sentiment to factors such as optimism for US interest rate cuts, signs of inflation easing, and increased interest in artificial intelligence within the tech sector.

The Nikkei's record-breaking ascent on February 22 marked a significant milestone, surpassing the previous high set before Japan's asset bubble burst in the early 1990s. Notably, high-tech investor SoftBank Group saw a 2.60 percent increase to 9,139 yen, while semiconductor shares, including Tokyo Electron and Advantest, experienced robust gains.

However, not all major shares saw gains during early trade. Toyota and Sony Group faced slight declines, dropping by 1.06 percent and 0.91 percent, respectively, reflecting the mixed performance across different sectors.