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Japan’s Nikkei hits all-time high, exceeding 42,000 points on gains on Wall Street (UPDATE 1)

Japan’s Nikkei hits all-time high, exceeding 42,000 points on gains on Wall Street (UPDATE 1)


Japan’s Nikkei hits all-time high, exceeding 42,000 points on gains on Wall Street (UPDATE 1)
Yomiuri Shimbun archive photo
Tokyo Stock Exchange

TOKYO (Reuters) – Japan’s Nikkei share index rose to an all-time high on Thursday, breaking above 42,000 points for the first time, as an overnight rally in U.S. stocks boosted investor sentiment.

The Nikkei closed 0.94% higher at 42,224.02 points, setting a record for the third consecutive week. The leading index had reached an intraday high of 42,426.77 points in early trading.

The broader Topix closed at a record high of 2,929.17, up 0.69%.

All three of Wall Street’s major stock indexes performed strongly on Wednesday ahead of inflation data and quarterly earnings due this week, sparking a broader rally in Japanese stocks.

180 of the 225 Nikkei stocks rose, including index heavyweight and Uniqlo parent company Fast Retailing, which gave the index the biggest boost with a 2.3 percent gain.

Semiconductor stocks followed their U.S. peers higher after Taiwan Semiconductor Manufacturing CoTSM.N, the world’s largest contract chipmaker, reported strong quarterly sales results.

Tokyo Electron rose 0.6% and Disco Corp climbed 3.4%.

Sumco rose 5.9 percent, making it the biggest percentage gainer in the Nikkei.

SoftBank Group, a startup investor specializing in AI, rose 0.8%.

Other technology stocks also rose, including Sony Group and Fanuc, up 3.6% and 1.4%, respectively.

Japanese stocks have reached an all-time high in the past two weeks. Analysts cite the further depreciation of the yen and greater market uncertainty regarding the outcome of this year’s US presidential election as reasons for this.

Analysts expect Japanese stocks to gain further momentum following corporate earnings announcements this month.

“This reporting season, Japanese corporate earnings are likely to be better than expected due to the yen depreciation,” said Kenji Abe, chief strategist at Daiwa Securities.

“There could be further price increases as companies report good earnings,” he said. The Nikkei high could rise to as high as 42,600 or 42,700 points.

The Nikkei has risen 25% so far this year.