TOKYO, JAPAN – Investors watched eagerly as Japan’s Nikkei 225 stock index reached a record high, surpassing the previous peak from 1989. The surge was driven by strong earnings and investor-friendly measures that have propelled Japanese equities this year.
The Nikkei 225 soared nearly 2% to reach 39,029, reflecting the bullish sentiment in the market. Both the Nikkei and the broader Topix have been standout performers in the Asia Pacific region, with double-digit gains so far this year after a remarkable 25% surge in 2023.
Banking, electronics, and consumer stocks were the driving forces behind the index’s climb. Aozora Bank, Furukawa Electric, and Resonac Holdings were among the top gainers, with Tokyo Electron, Softbank, and Fast Retailing also posting substantial increases.
Meanwhile, in an unexpected turn, shares of Lucid Group and Rivian Automotive dropped significantly in extended trading. Lucid reported lower-than-expected revenue, while Rivian announced steep losses and workforce cuts, leading to a 13% stock plunge.
In contrast, Nvidia’s Data Center business saw a remarkable 409% increase in fourth-quarter sales from the previous year. This significant growth reflects the company’s dominant position in supplying computer chips for AI research and products.
The robust performance of the Nikkei 225 reflects the ongoing recovery and resilience of the Japanese economy, contributing to the positive sentiment in the global stock markets. As investors continue to monitor the ongoing developments, the focus remains on how these factors will shape the future trajectory of the market.