Nikkei Hits 43,000 for the First Time Ever
Some Analysts Warn of Possible Correction
The Nikkei 225, Japan's leading stock market index, set an all-time high for the second consecutive day.
On August 13, the Nikkei index closed at 43,274, up 1.30% from the previous day. For the first time ever, it broke through the 43,000 mark, reaching an intraday high of 43,451.
According to the Nihon Keizai Shimbun (Nikkei), Sony Group, Mitsubishi Heavy Industries, and Mitsubishi UFJ Financial Group all hit record highs since their initial listings, while machinery stocks such as Fanuc and Hitachi Construction Machinery also saw strong buying interest.
The Nikkei index had also set a new record high in the previous session, closing at 42,718, the highest level in one year and one month.
On August 12 local time, the Dow Jones Industrial Average in the US closed up 1.1% from the previous session, the S&P 500 gained 1.13%, and the Nasdaq rose 1.39%, all ending at record closing highs. The US Consumer Price Index (CPI) released that day matched market expectations, fueling hopes that the Federal Reserve would cut interest rates, which also had an impact on the Japanese stock market.
Some market participants predict that the Nikkei index could surpass the 45,000 mark by the end of the year. However, the Nikkei also reported that there are concerns about a possible correction, as the index has surged by about 3,000 points over the past six trading days, signaling a potential short-term peak and prompting calls for caution.
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