Japanese Stock Market Hits Record High for 2 Consecutive Days... Will It Break the 40,000 Mark?

The Nikkei 225, Japan's representative stock market index, has set a new all-time closing high for two consecutive trading days. It has surged more than 17% since the beginning of the year and is now approaching the 40,000 mark.

[Image source=Reuters Yonhap News]

On the 26th, the Nikkei index closed at 39,233, up 0.35% from the previous session, on the Tokyo Stock Exchange. This followed the previous trading day on the 22nd, when it broke the previous record set during the "bubble economy" era for the first time in 34 years and 2 months, and then surpassed it again. The Nikkei index's price increase since the beginning of the year reached 17.24%. During the morning session, the Nikkei briefly surpassed the 39,300 level.

Among major stocks, Mitsubishi Corporation and Mitsui & Co., held by Berkshire Hathaway led by "investment master" Warren Buffett, rose by over 1%. The recent upward trend in the New York Stock Exchange, driven by an artificial intelligence (AI) rally including Nvidia, is also believed to have positively influenced the overall Tokyo Stock Exchange. The Tokyo market was closed on the 23rd, the Emperor's birthday, when the Dow Jones Industrial Average and the S&P 500 both hit record highs.

The Nihon Keizai Shimbun reported, "Compared to the end of 2023, the Nikkei index has risen by 6,000 points," adding, "It has outperformed the Dow Jones for the first time in eight years since March 2016." Observers predict the upward trend will continue for the time being, supported by the strong New York market and a weak yen. The newspaper added, "The Nikkei index has surpassed its highest level and entered uncharted territory."

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