Japan’s Nikkei average closing price exceeds 30,000 yen for the first time in 20 months


By Kevin Buckland

TOKYO (Reuters) – Japan’s Nikkei stock average traded above the key psychological level of 30,000 yen for the first time since September 2021 on Wednesday, boosted by a weaker yen and momentum from a strong domestic earnings season. finished.

The Nikkei ended the day at 30,093.59, up 0.84% ​​after hitting an afternoon high of 30,115.32.

The benchmark index has risen between 0.73% and 0.9% in each of the past four sessions, with the beginning of the streak coinciding with the reporting season peak on Friday.

The broader Topix rose 0.3% to 2,133.61, a modest gain, but rose to 2,136.39 at the afternoon’s open, breaking the 33-year high set on Tuesday.

“The tailwinds for the Tokyo Stock Exchange are still there, but there is a sense of overheating,” said Kazuo Uetani, an equity strategist at Nomura Securities.

“Whether it’s today, tomorrow or next week, the Nikkei 225 could fall at a healthy correction level and drop to around 28,700,” he said.

The Nikkei Stock Average is up more than 3% from Thursday’s close, with the export-heavy constituent stocks being helped by as much as 2.2% of the yen’s decline against the dollar, boosting earnings.

The domestic earnings season nearly ended on Monday, punctuated by a string of strong earnings and several share buybacks over the course of the week.

Kenji Abe, a strategist at Daiwa Securities, also said that against the backdrop of the Tokyo Stock Exchange’s push to improve corporate governance, Warren Buffett’s additional investment in Japanese trading companies, and the dovish stance of the new governor of the Bank of Japan, Kazuo Ueda. He pointed out that there has been strong overseas demand for Japanese stocks since April.

Abe said the Nikkei Stock Average could hit 31,000 this month, but could hit 27,000 if the slump continues into the summer and further signs of a slowdown in the U.S. continue, Abe said. said there is. (Reporting by Kevin Buckland, Editing by Sonia Cheema and Sohini Goswami)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *