Nikkei Average Continues to Rise, Exceeding Previous Closing High due to Rising US Stocks and Weak Yen
The Nikkei average continues to rise, briefly surpassing its previous closing high of 57,650 yen due to an increase in US stocks and a weaker yen.
On the Tokyo Stock Exchange, the Nikkei average saw a continuation of its upward trend, reaching a peak of over 57,660 yen, surpassing the highest closing price of 57,650.54 yen set on the 10th. This rise was influenced by the upward momentum from the U.S. market, where technology stocks enjoyed increased investment, thus uplifting major stock indices. Additionally, the depreciation of the yen against the dollar has further supported the stock prices, creating a favorable environment for exporters.
On the 18th, the Dow Jones Industrial Average in the U.S. also experienced a positive trend, closing up by 129.47 points (0.26%) at 49,662.66, marking its third consecutive day of gains. Several economic indicators released on the 18th surpassed market expectations, reinforcing confidence in the robustness of the U.S. economy. Notably, partnerships were announced between major semiconductor company NVIDIA and Meta Platforms (formerly Facebook) to collaborate on artificial intelligence (AI) infrastructure, contributing to a renewed interest in contentious technology stocks that had been under pressure due to fears surrounding AI's impact on existing businesses.
Furthermore, the exchange rate against the dollar saw the yen weakening to around 150 yen per dollar, a factor that generally benefits Japanese exporters by making their goods cheaper abroad. This combination of U.S. market dynamics and currency fluctuations is shaping a positive sentiment for the Japanese market, suggesting a buoyant outlook as Japan navigates through global economic changes.