By Kosaku Narioka
Japan’s benchmark stock index rose above 40000 for the first time, driven by greater corporate earnings and a surge in chip-related stocks, thanks to enthusiasm for beneficiaries of artificial intelligence.
The Nikkei Stock Average was recently 0.9% higher at 40258.41 on Monday morning.
On Feb. 22, the index hit an all-time high for the first time in 34 years, closing above the previous record reached at the height of the Japanese asset bubble in 1989. The index has since renewed record highs several times.
The Nikkei Stock Average had climbed 19% so far this year through Friday, after having risen 28% in 2023, driven by the return of modest inflation, improvements in corporate governance and a weaker yen, which boosts the value of corporate profits earned overseas in yen terms. A surge in chip stocks led the latest gains.
Marred by years of deflation and slow growth, the Japanese stock market has lagged behind others over the past decades.
Write to Kosaku Narioka at [email protected]
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