Nikkei index surges over 1,000 points, reaching 34-year high above 37,900

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13th February 2024 – (Tokyo) Japan’s benchmark Nikkei stock index witnessed a significant surge on Tuesday, soaring by more than 1,000 points compared to the previous week and reaching a remarkable level of above 37,900. This surge has propelled the index to a new high not witnessed in 34 years, surpassing the critical 37,900 threshold during trading hours for the first time since February 1990.

The 225-issue Nikkei Stock Average experienced a historic peak at 37,930.10 at 1.47pm local time, leaving market participants astounded by the impressive rally. This surge in the Nikkei Index reflects the growing optimism and investor confidence in the Japanese market.

The surge in the Tokyo market on Tuesday was primarily driven by broad-based buying activities, with a particular focus on semiconductor-related stocks. Investors showcased a robust risk appetite, buoyed by the previous day’s rise in the U.S. stock market. This surge in investor confidence has led to increased demand for Japanese semiconductor companies, which are considered key players in the global technology industry.

During the morning session, the Nikkei average closed at 37,798, representing a substantial 2.4 per cent increase from the previous trading day. This surge in the Nikkei Index has been attributed to several factors, including positive global economic indicators, the prospect of increased fiscal stimulus measures, and growing hopes for a resolution to the ongoing trade disputes.