Bingkai Karya – Japan’s Nikkei stock index surpassed the 40,000-point mark for the first time ever on Monday, fueled by a surge in technology shares. This rise continues a remarkable trend for the Japanese market in 2024, attributed to factors like corporate governance reforms and attractive valuations.
Tech shares led the charge, mirroring their US counterparts. The Nikkei climbed 0.79% to 40,226.83 by midday, exceeding the previous intraday peak of 39,990.23 set on Friday. Analysts suggest overseas investors, particularly those with a long-term outlook, are driving the buying spree.
The rally was particularly pronounced in the technology sector, aligning with the ongoing AI boom in the US market. Chip-testing equipment maker Advantest, a supplier to US AI giant Nvidia, witnessed a 3.9% increase, while chip-making equipment leader Tokyo Electron gained 2.7%. These two companies alone contributed significantly to Nikkei’s morning session rise.
Other notable gainers included Shin-Etsu Chemical, a manufacturer of semiconductor silicon products (up 2.2%), and JSR Corporation, a major producer of chipmaking photoresists (up 4.4%). The latter’s surge was reportedly fueled by news of a potential tender offer for its shares by the state-backed Japan Investment Corporation (JIC) this month.
The broader Topix index also experienced modest growth, rising 0.16% to 2,713.79. Among the Tokyo Stock Exchange’s sectors, electric machinery emerged as the third-biggest gainer (up 1.2%), following pulp and paper (up 2.1%) and mining (up 1.3%).
This record-breaking achievement signifies the continued bullish sentiment in the Japanese stock market, particularly within the technology sector. As the global tech landscape continues to evolve, it will be interesting to see how the Japanese market navigates this dynamic environment.
