Nikkei soars to all-time high as Nvidia drives chips rally
22/02/2024 04:02
(Recast to say Nikkei hit all time high)
TOKYO, Feb 22 (Reuters) - Japan's Nikkei share average
on Thursday surged past a record high scaled in December 1989,
as chip-related stocks rallied after U.S. chipmaker Nvidia's
outlook beat market expectations.
The Nikkei .N225 rose to as high as 39,029.00, crossing
the record high of 38,957.44 scaled on the final trading day of
1989. At the new peak of 39,029.00 the benchmark has risen 52%
from its Jan 2023 trough. urn:newsml:reuters.com:*:nL3N3F41YM
The index was up 1.96% to 39,014.19 by 0349 GMT.
Nvidia shares surged 6% overnight after it forecast fiscal
first-quarter revenue above estimates on robust demand for its
chips that dominate the market for artificial intelligence (AI).
"The market was strong. Investors were waiting for the
outlook of Nvidia," said Jun Morita, general manager of the
research department at Chibagin Asset Management.
Tokyo Electron 8035.T jumped 5.38% to give the biggest
boost to the Nikkei. The chip-making equipment maker rose 44% so
far this year, while chip-testing equipment maker Advantest
6857.T surged 6.65.
Another chip-related Screen Holdings 7735.T is up nearly
10% in the current session, while tech-start up investor
SoftBank Group 9984.T rose 5.4%.
(Reporting by Junko Fujita
Editing by Shri Navaratnam)
((junko.fujita@thomsonreuters.com;))