Japan Nikkei Index Hits Highest Level in 33 Years... Corporate Earnings Improve

Japan's representative stock index, the Nikkei 225 average, reached its highest level in 32 years and 9 months on the 19th. The improvement in corporate earnings due to the endemic (periodic outbreak of infectious diseases) and a weak yen, along with the activation of domestic consumption, were analyzed as factors driving the stock market boom.

On that day, the Nikkei index closed at 30,808.35, up 234.42 points (0.77%) from the previous day, on the Tokyo Stock Exchange.This is the highest closing price since August 1990, during the bubble economy period. Buying momentum surged right after the opening, pushing the index up to 39,245.7 during the session, but it then fluctuated around 30,800 before closing.

The Nikkei index has been rising for seven consecutive trading days since the 11th. The main reason cited is that Japanese companies are showing favorable earnings due to the endemic and weak yen. It is also analyzed that the increase is due to more foreign investors turning to the Tokyo stock market, fearing an economic slowdown caused by interest rate hikes in the US and Europe.

The 10,000 yen banknote, symbolizing Japan benefiting from the effect of the weak yen.