Nikkei Closes Above 38,000 For 1st Time In 34 Years

The Nikkei stock index achieved a significant milestone yesterday by closing above 38,000 points for the first time in 34 years, Kyodo News reported.

This marked its highest closing level since January 1990. I Photo: Kyodo

This surge was attributed to the performance of semiconductor-related companies and the optimistic outlook for growth in artificial intelligence technology.

Specifically, the 225-issue Nikkei Stock Average concluded the trading day with a gain of 454.62 points, or 1.21 percent, reaching 38,157.94 points. This marked its highest closing level since January 1990.

The broader Topix index also saw an increase, rising by 7.26 points, or 0.28 percent, to 2,591.85 points. Notably, gainers on the top-tier Prime Market were led by insurance, machinery, and oil and coal product issues.

In terms of currency markets, the US dollar weakened against the yen in Tokyo trading.

This shift was influenced by comments from a Federal Reserve official indicating that the central bank remains on track to meet its inflation target despite higher-than-expected January inflation.

Consequently, the reduced prospect of prolonged high-interest rates contributed to the dollar's decline.

At the close of trading, the dollar was trading in the lower 150-yen range, specifically at 150.20-21 yen, compared to its levels in New York and Tokyo the previous day. Overall, the Nikkei's historic milestone and the dynamics in currency markets reflected the ongoing optimism and economic trends shaping Japan's financial landscape.

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