The Nikkei 225 share benchmark achieved a historic milestone on Monday, surpassing 40,000 for the first time, propelled by robust demand for technology shares that continue to elevate the index.
This development coincides with positive trends in US stocks, including Nasdaq, Dow Jones, and S&P 500, which have all recorded significant gains, largely attributed to the influence of the technology sector. Many attribute this surge to Nvidia, a US-based leader in chip design and GPUs.
In a matter of weeks, the company’s prospects have soared, surpassing Saudi Aramco to claim the position of the third-largest company by valuation. Currently valued at $2.056T, Nvidia follows closely behind Apple and Microsoft, establishing itself as one of the most valuable companies globally.
The index experienced an increase of 168.93, reaching 40,079.75 at 09:49 IST.
Shares in companies associated with computer chips surged, with Tokyo-based Renesas Electronics witnessing a notable 5.8% increase. Similarly, Advantest Corp., another Tokyo-based tech company focusing on its semiconductor business after a recent leadership change, observed a 3.9% rise in its shares.
Japanese Market Momentum: Tech Demand Drives Shares, Olympus Gains, and South Korea’s KOSPI Rises Amidst Tech Hub Status and Supportive Credit Policies
The upward trajectory of Japanese shares aligns with global market trends, especially the growing anticipation for heightened demand in technology linked to artificial intelligence.
Olympus, a venerable 105-year-old brand renowned for its advanced optical technology, recorded a substantial 7.4% increase.
South Korea, Japan’s western neighbor, also experienced a positive turn as its KOSPI index rose to 2,673.90, gaining 31.54 points at 09:51 IST. Notably, the peninsula is home to major tech companies, according to The Free Press Journal.
This growth is accompanied by sustained lenient credit policies, which have contributed to keeping the Japanese yen relatively weak against the U.S. dollar and other prominent currencies.
The Bank of Japan’s infusion of money into the economy aims to support growth and enhance the profitability of exporters.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)
