Nikkei races to fresh 34-year high, all-time peak in sight

SumCo

16/02/2024 03:32

(Updated with levels at midday close, comments, more
background)
    By Brigid Riley
       TOKYO, Feb 16 (Reuters) - Japan's benchmark Nikkei got
off to a roaring start on Friday, hitting 34-year highs and was
on the cusp of eclipsing the all-time peak reached during the
hey days of the nation's bubble economy in the 1980s.
    The index blew past the post-economic bubble era record of
38188.74, putting it on course to surpass the life-time high of
38,957.44 reached in December 1989.
    The Nikkei share average  .N225  relinquished some of its
early gains but was still up 0.91% at 38,505.89 by the midday
close. Of the index's 225 constituents, 202 advanced while only
21 declined.
    "The speed (at which the Nikkei is rising) is faster than I
had expected, but I think it's justified" given fundamental
improvements such as corporate governance reform, said Kenji
Abe, an analyst at Daiwa Securities.
    The broader Topix  .TOPX  was up 1.26% at 2624.53.  
    Japan's stock market was buoyed by a strong day on Wall
Street overnight. U.S. stocks closed higher after U.S. retail
sales data declined more than expected, feeding hopes the
Federal Reserve will start cutting interest rates in coming
months.
    Among the stocks leading the charge, entertainment company
Bandai Namco Holdings Inc  7832.T  rebounded 7.59% after
tumbling on Thursday, followed by insurance firm T&D Holdings
Inc  8795.T , up 6.24%, and Rakuten Group Inc  4755.T  gaining
5.96%.
    In megacap shares, Toyota Motor  7203.T  gained 1.06%, Fast
Retailing  9983.T  was up 0.94% and telecommunications services
firm KDDI Corp  9433.T  rallied 2.37%. 
    A brief jump in oil prices overnight boosted related
sectors, with the oil and coal products Topix subindex
 .IPETE.T  up 3.76%.
    On the broader economic front, investors were also assessing
Thursday's gross domestic production report showing Japan
unexpectedly slipped into a recession at the end of last year,
and how that will affect the Bank of Japan's (BOJ) monetary
policy outlook.
    BOJ chief Kazuo Ueda appearance before Japan's parliament on
Friday will be closely watched. 
   

 (Reporting by Brigid Riley
Editing by Shri Navaratnam)
 ((brigid.riley@thomsonreuters.com;))