Japan's Nikkei index hits highest level in over 30 years
Date
11/21/2023 5:05:19 AM
(MENAFN) Japan's NIKKEI index reached its highest level in over three decades on Monday before retracing its gains and closing lower, as investors exhibited caution towards the index's recent substantial advances. The Nikkei experienced a decline of 0.59 percent, settling at 33,388.03 points by the close, after earlier reaching its peak since March 1990.
Similarly, the broader Topix index also reversed its trajectory, falling by 0.77 percent to 2,372.60 points at the close. Takehiko Masuzawa, the head of trading at Philip Securities Japan, noted that investors opted to sell stocks, exercising caution due to the Nikkei's rapid gains in the recent period. The Nikkei has demonstrated an eight percent rise this month, positioning itself for its most substantial monthly gain since November 2020.
Masuzawa highlighted that despite the caution, the Nikkei holds more positive indicators than negative ones. Strong corporate expectations, stock buybacks following the recent earnings season, and indications of US interest rates stabilizing have contributed to the positive sentiment surrounding the index.
Chip-related stocks played a pivotal role in the Nikkei's fluctuations, with Tokyo Electron witnessing a 0.87 percent decline and Advantest falling by 1.55 percent. The market dynamics suggest a delicate balance between the optimism fueled by positive factors and the cautious approach adopted by investors in response to the Nikkei's recent impressive performance.
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