Nikkei Index Surpasses 35,000 Points... "Breakthrough After 34 Years"

Nikkei 225 Index Continues New Year Uptrend
"Rise Driven by Fear of Missing Out on Stock Purchases"

The Nikkei 225 index, the representative stock index of the Japanese stock market, has risen continuously since the beginning of the new year, surpassing the 35,000 mark on the 11th for the first time in about 34 years.

On this day, the Nikkei index closed at 35,049.86, up 1.77% from the previous trading day. During the session, the Nikkei index soared to as high as 35,157.56. According to the Nihon Keizai Shimbun, this is the first time the Nikkei index has exceeded 35,000 since the late February of 1990, during the so-called "bubble economy" period.

[Image source=AFP Yonhap News]

The Nikkei index closed at 33,464 on December 29 last year. The index rose to 33,753 on July 3 last year, the highest point since the bubble burst, and then fluctuated within a certain range for about half a year. After rising 28% over the course of last year, the Nikkei index has maintained its upward trend into the new year.

The rise was influenced by the increase in major stock indices in the U.S. market the previous day, as well as the start of the new tax-exempt small investment scheme (NISA), which has activated stock trading among individual investors. Nihon Keizai diagnosed that "the fear of having bought stocks too late has fueled the upward trend."

The strong performance of the Japanese stock market is analyzed to be influenced by the yen’s weakness, which has energized export companies. Additionally, with wage-related statistics for workers showing weak results, concerns about an imminent interest rate hike by the Bank of Japan (BOJ) have been alleviated, and the macroeconomy is showing a steady trend. The rise of U.S. tech companies, including Nvidia, was also cited as a supporting factor for the Japanese stock market.

Another major index, the TOPIX index, also jumped 1.57% on the day, closing at 2,482.87.