Tokyo Stock Market Sees Highest Level in 34 Years, Nikkei Average Jumps 900+ Yen

On the morning of February 13th, the Nikkei Stock Average on the Tokyo stock market rose by 901.47 yen from the previous business day to 37,798.89 yen, a significant increase for the third day in a row. The photo was taken in October 2020 at the Tokyo Stock Exchange in Tokyo (2024 Reuters/Kim Kyung-Hoon)

TOKYO (Reuters) – At the Tokyo stock market, the Nikkei average rose 901.47 yen from the previous business day to 37,798.89 yen, increasing significantly for the third consecutive day. The stock price rose on the back of high U.S. stock prices during the holidays and favorable corporate earnings, hitting a new high after the bursting of the bubble economy and the highest level in about 34 years since February 1990. Major stocks such as Tokyo Electron (8035.T) and opens new tab rose significantly, pushing up the Nikkei average. The Nikkei average started 350 yen higher. After that, the price continued to rise, reaching a high of 37,802.51 yen, an increase of 905 yen, at the end of the first session. Tokyo Electron, which announced an upward revision to its full-year forecast on the 9th, temporarily rose more than 12%, pushing up the Nikkei average by about 340 yen. The TOPIX Core 30 (.TOPXC), opens new tab, which consists of large-cap stocks with large market capitalization and high liquidity, rose 2.84%, showing the highest rate of increase among major stock indexes. Many believed that stock purchases were supporting the market price.

Hideyuki Suzuki, head of investment research at SBI Securities, describes the Nikkei average in the 37,000 yen range as a so-called vacuum zone. While the stock is trending at its highest level in about 34 years, the topside is said to be light because this level is not a price range where there is a large amount of trading value (volume zone). “Comparisons with 34 years ago are often made, but corporate performance and governance have improved considerably since then.The expectation that the actual situation is even better than it was 34 years ago is also supporting the situation.”

TOPIX closed the morning session at 2,605.28 points, up 1.85%. It also hit a new high after the bursting of the bubble economy, and is at a level not seen since February 1990. The trading value on the TSE prime market was 3,161,222 million yen. Of the 33 industries on the TSE, 29 saw price increases, including insurance, services, electrical equipment, and information and communications, while prices fell in 4, including pulp and paper, real estate, and retail.

Among major stocks, in addition to Tokyo Electron, SoftBank Group (9984.T), opens new tab, and Recruit HLDG (6098.T), opens new tab also rose significantly, pushing up the Nikkei average by about 500 yen. Tokio Marine Holdings (8766.T), opens new tab and MS&AD Insurance Group Holdings (8725.T), opens new tab also rose by 10-12%. Otsuka Holdings (4578.T), opens new tab, which announced lower earnings forecasts in the morning, fell 6.9%. Mazda (7261.T), opens new tab is down over 7%, Nippon Paper Industries (3863.T), opens new tab is down over 14%, and JGC Holdings (1963.T), opens new tab is down over 17%. Ta.

Regarding the number of rises and falls in the TSE prime market, 1,210 stocks rose (73%), 412 stocks fell (24%), and 32 stocks remained unchanged (1%).

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2024-02-13 14:58:32
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