Japan’s Nikkei crosses 39,000 as robust earnings, investor-friendly measures drive risk-on sentiment
Japan’s Nikkei 225 hit a record high Thursday, as robust earnings and investor-friendly measures fuel a blistering rally in Japanese equities this year.
Japan’s Nikkei 225 hit a record high Thursday, powered by banking, electronics and consumer stocks as robust earnings and investor-friendly measures fuel a blistering rally in Japanese equities this year.
The Nikkei 225 jumped nearly 2% to hit 39,029, surpassing the previous record high of 38,915.87 reached in 1989.
Both the Nikkei and the broader Topix have been standout outperformers in the Asia-Pacific, up more than 10% so far this year after surging more than 25% in 2023 — their respective best annual gains in at least a decade.
Japan Inc.’s solid third-quarter corporate earnings have prompted Bank of America equity strategists to upgrade their 2024 year-end forecasts for the Nikkei 225 to 41,000 from 38,500. They raised their forecasts for the Topix to 2,850 from 2,715.
The rally has also been supported by a weaker yen, which has shed about 6% against the dollar so far this year and seems on track to drop to 33-year lows touched late last year.
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