Japan’s Nikkei Closes above 30,000 for First Time in 20 Months
16:17 JST, May 17, 2023
TOKYO (Reuters) – Japan’s Nikkei share average closed above the key psychological 30,000 level for the first time since September 2021 on Wednesday, buoyed by a weaker yen and momentum from a strong domestic earnings season.
The Nikkei .N225 ended the day up 0.84% at 30,093.59 after hitting a high of 30,115.32 in the afternoon session.
The benchmark index has now risen between 0.73% and 0.9% in each of the past four sessions, with the start of the streak coinciding with the peak of the reporting season on Friday.
The broader Topix .TOPX gained by a more modest 0.3% to 2,133.61, but renewed the 33-year peak reached on Tuesday by rising as high as 2,136.39 at the start of afternoon trading.
“The tailwinds for the Tokyo Stock Exchange are still in place, but there’s a feeling of overheating,” said Kazuo Kamitani, an equity strategist at Nomura Securities.
“Whether it’s today, tomorrow, or next week, the Nikkei is due for a healthy adjustment lower,” potentially to around 28,700, he said.
The Nikkei has climbed more than 3% from Thursday’s close, with its exporter-heavy constituents supported by a revenue-boosting decline of as much as 2.2% in the yen against the dollar.
The domestic earnings season largely wrapped up on Monday and was punctuated by a spate of strong results and several share buybacks during the week-long period.
Daiwa Securities strategist Kenji Abe also noted the strong foreign demand for Japanese equities since April, driven by the Tokyo Stock Exchange’s push for better corporate governance, Warren Buffett’s additional investment in Japanese trading companies, and new Bank of Japan Governor Kazuo Ueda’s dovish stance.
Abe said the Nikkei could hit 31,000 this month, but that would be followed by weakness heading into the summer with the index potentially touching 27,000 as more signs of a U.S. slowdown emerge.
"News Services" POPULAR ARTICLE
-
Dollar Edges Lower, Yen at 34-year Trough
-
Japan Visitors Exceed 3 Mln in March, a Monthly Record, Tourism Agency Says
-
EU Ratchets up Pressure on TikTok’s New Rewards App over Risks to Kids, Warns of Suspension
-
Japan’s Nikkei Ends 1% Higher after Sharp Fall; Chip-Related Shares Weigh (Update 1)
-
Japan’s Yen Hits 155 Per Dollar, Weakest Since 1990
JN ACCESS RANKING
- Japan, U.S., Philippines to Strengthen Nickel Supply Chains; Reduce Reliance on China for Critical Minerals
- China Mutes Memorialization of Reformer Hu Yaobang; Memories Could Spark Critique of Xi Administration
- Shinkansen Services Suspended After Man ‘Searches for Phone’ on Tracks; Disruption Affects About 14,000 Passengers
- U.S. 7th Fleet officer Arrested on Suspicion of Stealing Sushi, Sashimi, Chicken at Kanagawa Shopping Mall; Suspect Caught Mid-Meal
- UNRWA Director Describes Catastrophic Destruction in Gaza; Says Relief Trucks Robbed, ‘People’s Hearts Destroyed’