Markets

Tokyo Stocks Hit Fresh 33-year High on Debt Ceiling Deal in U.S.

Yomiuri Shimbun file photo
Tokyo Stock Exchange

Jiji Press

17:36 JST, May 29, 2023

TOKYO (Jiji Press) — Tokyo stocks rose sharply Monday following a breakthrough in U.S. debt ceiling talks, with the benchmark Nikkei stock average marking a fresh 33-year closing high.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section advanced 317.23 points, or 1.03%, to finish at 31,233.54, the highest closing since July 26, 1990, following its climb for two straight market days. The broader TOPIX index ended 14.81 points, or 0.69%, higher at 2,160.65 to snap its four-day losing streak.

The market attracted broad-based purchases right after the opening bell, as investors took heart from media reports that U.S. President Joe Biden and House of Representatives Speaker Kevin McCarthy reached a final agreement to lift the U.S. debt ceiling to avert a default. Also getting a boost from the yen’s weakening against the dollar, the Nikkei gained more than 600 points in early trading.

But its topside proved heavy as profit-taking pressure gradually built up reflecting concerns over an overheated market, brokers said. Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., also pointed out that stocks failed to continue to gather steam due to weak buying by foreign players during the three-day weekend in the United States.

On the Prime section, gainers overwhelmed decliners 1,135 to 603 while 97 issues were unchanged.