Asian markets begin the week in a climate of contagious optimism. The flagship index of the Tokyo Stock Exchange soars, surpassing this symbolic threshold from the start and closing the session with an increase of 0.5%. The Nikkei 225 appears insatiable, posting a remarkable 20% rise since the start of the year, shattering its all-time highs dating back to December 1989.
The Tokyo Nikkei crosses 40,000 points, driven by the technological surge
Frenzy reigns on the Tokyo Stock Exchange as the flagship index, the Nikkei 225, crosses for the first time the 40,000 points mark from the openingending the day at 40,109 points, thus recording an increase of 0.5%.
The vitality of the Japanese market is fueled by several factors, notably the persistent weakness of the yen, boosting the profits of Japanese companies abroad while making their shares attractive to foreign investors. Additionally, Japanese companies now reward their shareholders more with more generous dividends and more frequent share buyback programs. Finally, the unstable situation of Chinese financial markets pushes investors to look for alternatives, thus benefiting the Tokyo Stock Exchange.
“ We believe Japan will be one of the best performing markets between 2023 and 2030. The big story of shareholder returns in Japan has begun », Comments Jefferies analysts in a research report published yesterday cited by CNN.
This Monday, the upward trend of the Nikkei is boosted by impressive performance of technology stocksfollowing the momentum of Wall Street and in particular the Nvidia performance, which recently crossed the $2 trillion mark in market capitalization. THE Japanese semiconductor companiessuch as Tokyo Electron and Advantest, also contributed to the rise, with gains of 2.4% and 3.7%, respectively.
Optimism around semiconductors also boosted the Taiwanese stock market, where the benchmark index hit a record high, driven by the performance of Taiwan Semiconductor Manufacturing Company. The world’s largest contract chip maker recorded a 5.2% rise, reaching its all-time high.
China on Hold: Investors’ Eyes on the National People’s Congress
Chinese stocks advance timidlyinvestors suspended from the upcoming decisions of theNational People’s Assembly. This annual meeting, bringing together 3,000 delegates in Beijingshould reveal the growth targets for 2024 as well as potential economic recovery measures. The markets are holding their breath before the announcement of these crucial guidelines.
As for the Tokyo Stock Exchange, it has already recorded several record levels in recent months, even surpassing its previous ones. historic highs of December 1989. This positive dynamic is a continuation of the exceptional performance of 2023, with the Nikkei 225 having jumped almost 20% since January after an increase of 28% the previous year.
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