Nikkei reaches record high thanks to robust performance of financial, technology stocks


(MENAFN) On Wednesday, Japan's NIKKEI share average surged to new heights in a volatile trading session, fueled by robust performances from financial Stocks and renewed investor interest in capitalizing on recent market gains. Despite starting the afternoon session in negative territory, a late-session buying spree propelled the Nikkei to reach an unprecedented peak of 41,889.16 points before settling at a record closing level of 41,831.99, marking a 0.61 percent increase. Concurrently, the broader Topix index also achieved a record close, rising by 0.47 percent to 2,909.20.

The Nikkei's remarkable ascent this year underscores a notable 25 percent gain since the beginning of 2024, reflecting strong investor confidence amidst favorable market conditions. Major contributors to this surge included gains in large-cap stocks, exemplified by Fast Retailing, the parent company of Uniqlo, which rose by 1.4 percent, and SoftBank Group Corp, focusing on artificial intelligence, which increased by 0.8 percent.

Earlier sell-offs in technology and semiconductor stocks following Tuesday's rally were mitigated as the session progressed, with notable recoveries seen in companies like Tokyo Electron Co., a leading chip-making equipment manufacturer, which rebounded to close 1.1 percent higher after initial declines.

The rally in Japan's main stock indexes over the past fortnight has been bolstered by optimistic market sentiment and expectations surrounding upcoming corporate earnings reports scheduled for the latter half of July. Analysts anticipate that strong earnings performances could further propel Japanese stocks, sustaining the current bullish momentum.

Notably, insurance companies led gains with a notable 3.5 percent increase, while securities and banking firms also posted solid gains, rising by 1.3 percent collectively. This broad-based rally across various sectors highlights the robustness of Japan's equity market amidst ongoing global economic dynamics and investor appetite for growth opportunities. 

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