Nikkei 225 reaches record high as global markets rise due to robust corporate earnings
Date
2/22/2024 8:12:55 AM
(MENAFN) Thursday witnessed a surge in global markets, with Japan's NIKKEI 225 share benchmark reaching an unprecedented high, surpassing its previous peak set in December 1989. Tokyo's benchmark closed at 39,098.68, eclipsing the previous record of 38,915.87 established just before Japan's bubble Economy collapsed in the early 1990s. The robust performance of the Nikkei reflects a broader trend of optimism fueled by strong corporate earnings and investor enthusiasm.
In pre-market trading, futures for the S&P 500 surged 1.1 percent, buoyed by Nvidia's remarkable 13.2 percent jump following the chipmaker's stellar earnings report, which exceeded Wall Street forecasts. Nvidia's impressive revenue tripled over the past year, driven by heightened investor interest in artificial intelligence technologies.
Meanwhile, European markets also exhibited resilience, with Britain's FTSE 100 holding steady at 7,661.95, while Germany's DAX climbed 1.2 percent to 17,320.23, and France's CAC 40 rose 0.7 percent to 7,869.99 during early trading. The positive sentiment reverberating across global markets underscores the broad-based optimism surrounding corporate earnings and economic recovery prospects.
The Nikkei's remarkable ascent has been fueled primarily by robust buying activity from foreign investors, who dominate trading volume on the Tokyo exchange. Despite lingering economic challenges, including Japan slipping back into a technical recession late last year, record gains in corporate earnings have bolstered investor confidence, driving increased demand for shares in Japanese companies.
Moreover, the weakness of the Japanese yen against the U.S. dollar has further incentivized investment in Japanese equities, contributing to the Nikkei's stellar performance. Amidst a backdrop of uncertainty, Japan's stock market resilience serves as a testament to the allure of strong corporate fundamentals and the enduring appeal of equities as a viable investment avenue.
Across Asia, most markets experienced solid gains, reflecting a broader sentiment of optimism and resilience in the face of economic uncertainties. As global markets continue to navigate evolving dynamics, the Nikkei's record-breaking rally underscores the resilience of equities amidst a backdrop of volatility and uncertainty, signaling a bullish outlook for investors worldwide.
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