Soaring Japanese Stock Market... Nikkei Hits Record High for 3 Consecutive Trading Days

Breaking 39,400 During Trading Session

The Japanese stock market (Nikkei) has been hitting record highs for three consecutive trading days. The Nikkei 225 average closed at 39,239, up 0.01% from the previous session on the 27th.

On the morning of the same day, it briefly surpassed the 39,400 mark, reaching an all-time high of 39,426. This surpassed the intraday record of 39,388 set the previous day.

On the 22nd, the intraday high of 39,156 was recorded, breaking the previous all-time high from the "bubble economy" era for the first time in over 34 years.

[Image source=Yonhap News]

The Nikkei analyzed that bank stocks were actively bought as the January consumer price inflation rate in Japan exceeded market expectations, raising prospects that the Bank of Japan would pursue normalization of its monetary policy.

The Ministry of Internal Affairs and Communications announced that the consumer price index (excluding fresh food) for January rose 2.0% compared to the same month last year. As recent economic and price trends improve, there are expectations that large-scale monetary easing policies, such as the negative interest rate, will soon be normalized.

Accordingly, financial stocks, which are considered beneficiaries of interest rate hikes, hit their highest prices in over 10 years on the day. Mizuho Financial Group, which owns Mizuho Bank, one of Japan's three major banks, and Mitsui Sumitomo Financial Group, which has Mitsui Sumitomo Bank as an affiliate, both rose more than 3% at one point during the session compared to the previous day. The stock prices of Mizuho and Mitsui Sumitomo were the highest since January 2009 and July 2008, respectively. Mitsubishi UFJ Financial Group's stock also rose more than 2% at one point, reaching its highest level since January 2007.