Nikkei soars to all-time peak as Nvidia optimism drives chips rally
22/02/2024 05:12
(Updates prices, quotes)
TOKYO, Feb 22 (Reuters) - Japan's Nikkei share average
on Thursday surged past the 1989 bubble-era record high, as
chip-related stocks led across-the-board gains after U.S.
chipmaker Nvidia's outlook beat market expectations.
The Nikkei .N225 rose to a high of 39,029.00, crossing the
record high of 38,957.44 scaled on the final trading day of 1989
during the height of Japan's bubble economy.
At the new peak of 39,029.00 the benchmark has risen 52%
from its Jan 2023 trough, supercharged by a tech-rally,
corporate governance changes and rising exporters' profits
thanks to a weak yen . urn:newsml:reuters.com:*:nL3N3F41YM urn:newsml:reuters.com:*:nL3N3EZ1JS
The index was up 1.6% to 38,872.49 by 0429 XX 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).
"For us traders, this marks the arrival of a new era. It
feels like the stock market is telling us that we've finally
escaped from deflation and a new world has opened up," said
Tsutomu Yamada, senior market analyst at au kabu.com Securities.
Tokyo Electron 8035.T jumped 4.95% to give the biggest
boost to the Nikkei. The chip-making equipment maker rose 43.5%
so far this year, while chip-testing equipment maker Advantest
6857.T surged 5.7%.
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 4.54%.
Auto parts and automakers .ITEQP.T rose 2.04% to become
the biggest gainer among the Tokyo Stock Exchange's 33 industry
sub-indexes.
Of the 225 components on the Nikkei, 159 stocks rose and 66
fell.
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Japan's Nikkei share average crosses all-time high https://reut.rs/49Ck96k
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(Reporting by Junko Fujita
Editing by Shri Navaratnam)
((junko.fujita@thomsonreuters.com;))