The Strategist

Japan's Nikkei 225 index tops 38,000 points for the first time since 1990

02/14/2024 - 07:33

For a brief while, the Nikkei 225 index in Japan rose above 38,000 points for the first time since 1990. The robust financial outcomes of technological enterprises bolstered their expansion.

Zack Lee
Zack Lee
For the first time since 1990, the Nikkei 225 stock index in Japan hit above 38,000 points during trading on February 13, according to CNBC. Nikkei 225 was at 37,963.87 points (+2.89%) at the end of trade. The Tokyo Stock Exchange index, or Topix, increased by 2.1% to 2,612.03 points.

According to Bloomberg, the Nikkei 225's short-term gain of 3% during the trading day was the biggest since November 2022. It was made easier by the increase in the value of technology company stock, particularly Tokyo Electron, a producer of semiconductor manufacturing equipment, following the release of reports.

Tokyo Electron's stock increased 13.33% on the company's forecast of an operating profit of 445 billion yen ($2.97 billion) for the fiscal year that ends in March.

Furthermore, SoftBank's stock increased by almost 11%. This occurred in the context of the rapid rise in the Japanese investment company Arm's (chip developer) stock, which has climbed 93% to $148.97 since the financial statements were released on February 8.

The rapid increase in stock values of semiconductor companies makes sense in light of rising profits and discussions about artificial intelligence, according to Masahiro Yamaguchi, senior market analyst at SMBC Trust Bank.