The Nikkei 225 index, the representative stock index of the Japanese stock market, surpassed the 38,400 mark on the 16th, setting a new 34-year high since the 'bubble economy.' It is now very close to the all-time high of 38,915 recorded at the end of 1989.
On that day, the Nikkei index closed at 38,487.24, up 329.30 points (0.86%) from the previous session on the Tokyo Stock Exchange.
It is evaluated that the overall investor sentiment was driven by the rise in U.S. stock prices the previous day and strong performance by U.S. semiconductor companies. Supported by overseas investors' buying of semiconductor-related stocks, the index rose intraday to as high as 38,865, narrowing the gap to the all-time high (38,915) to just 50 yen points. Although Japan's real GDP for the fourth quarter of last year, released the previous morning, showed negative growth for two consecutive quarters, optimism that the Bank of Japan (BOJ) will maintain its accommodative policy stance for some time is interpreted as having driven the stock market's upward trend.
NHK analyzed that the rise in the Japanese stock market on this day was influenced by the increase in major U.S. stock indices on the 15th (local time). It also reported that buying continued due to strong corporate earnings in Japan.
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