Nikkei Index Surpasses 40,000 for the First Time... All-Time High

by Kim Jinyeong

Published 04 Mar.2024 16:04(KST)

Updated 04 Mar.2024 19:36(KST)

The Nikkei 225 index, the representative stock index of the Japanese stock market, surpassed the 40,000 mark for the first time in history on the 4th.

On that day, the Nikkei index closed at 40,109, up 0.5% from the previous session, breaking the closing record of 39,910 set on the 1st once again. It even exceeded 40,300 at one point in the morning session.

[Image source=Reuters Yonhap News]

The Nasdaq index, a leading index of the New York stock market, reached an all-time high earlier, driven by rallies in the artificial intelligence (AI) and semiconductor sectors, which also positively influenced the Japanese stock market that day. Buying momentum continued, fueled by expectations of strong corporate earnings.

By sector, semiconductor stocks led the gains. Following a sharp rise in the Philadelphia Semiconductor Index (SOX), composed of semiconductor stocks in the New York stock market, buying interest also poured into semiconductor-related stocks in the Tokyo market. Tokyo Electron and Advantest rose 2.37% and 3.67%, respectively, compared to the previous session. The Nikkei newspaper reported that the stock prices of these two companies lifted the Nikkei index by about 150 points.

Japanese Prime Minister Fumio Kishida commented on the Nikkei index entering the 40,000 range for the first time in history, saying, "It appears to reflect the positive outlook of market participants toward the Japanese economy," and added, "We will maintain the upward trend in stock prices by achieving a virtuous economic cycle based on structural wage increases."

However, among the Prime Market stocks of the Tokyo Stock Exchange, only about 25%, or 425 stocks, closed higher that day. Prices of 1,195 stocks fell, and 37 stocks remained unchanged. The newspaper noted that selling pressure was particularly noticeable in some cyclical stocks such as banking, shipping, and air transportation.

The TOPIX index, which reflects all stocks in the Tokyo Stock Exchange First Section, also closed the day down 3.14 points (0.12%) at 2,706.28 compared to the previous session.