Japanese Stock Market Also Boosted by US Wind... Nikkei Hits Highest in 30 Years and 4 Months (Comprehensive)

[Image source=AP Yonhap News]

[Asia Economy Reporter Seulgina Jo] The Japanese stock market hit its highest level in 30 years and 4 months. The surge in the New York stock market, following U.S. President Donald Trump's signing of the COVID-19 economic stimulus package, acted as a positive factor.

On the 29th, the Nikkei 225 index, the representative index of the Tokyo Stock Exchange, closed at 27,568.15, up 2.66% (714.12 points) from the previous session. This is the highest closing level since August 1990, 30 years and 4 months ago. The daily gain was the largest since mid-June. From early morning trading, the index surpassed the psychological support level of 27,000, and at one point during the session, the gain reached over 750 points.

The TOPIX index, composed of large-cap stocks, also rose 1.74% (31.14 points) to 1,819.18, marking its highest level in 2 years and 3 months. The JPX Nikkei 400 index has been rising for five consecutive trading days. It closed at 16,475.26, up 1.77% (286.55 points) on the day.

This strong market trend is interpreted as a result of President Trump's signing of the additional economic stimulus package. On the previous day, the Dow Jones Industrial Average, S&P 500, and Nasdaq indices all hit record highs in the New York stock market. The passage of the long-awaited U.S. additional stimulus package revived risk asset preference sentiment.

The Nihon Keizai Shimbun reported, "Although there were expectations of a correction in the rising market after the Nikkei 225 index surpassed 27,000 immediately after the opening, the upward momentum gained further strength as it reached 27,200. Futures driven by mechanical buying led the rise." On that day, the trading value on the Tokyo Stock Exchange First Section reached 2.2042 trillion yen, with a trading volume of 1.02087 billion shares.

By sector, stocks sensitive to economic fluctuations such as airlines and banks led the market higher. Shin-Etsu Chemical's closing price reached 18,345 yen, the highest since its listing. Japanese electronic components and device companies Murata Manufacturing and Keyence also recorded their highest levels since the beginning of the year. High-tech related stocks showed strength as well. Companies hit by the COVID-19 pandemic, such as Tokai Passenger Railway (JR Tokai) and Japan Airlines (JAL), also showed an upward trend.

This content was produced with the assistance of AI translation services.