⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Japan’s Nikkei index hits record high as tech rallies on AI hype

Published 2024-02-21, 07:56 p/m
© Reuters.

Investing.com-- Japan’s Nikkei 225 index hit an intraday record high on Thursday, buoyed chiefly by gains in the technology sector as hype over artificial intelligence spurred a rally in major chip stocks.

The Nikkei 225 jumped 1.8% to a record intraday high of 39,001.50 points, crossing a peak last seen in 1989, before the unwinding of a massive speculative bubble in Japan.

The broader TOPIX index rose 1% and was also in sight of a record high.

Gains on the Nikkei were driven chiefly by heavyweight technology stocks, as consensus-beating fourth-quarter earnings from AI darling NVIDIA Corporation (NASDAQ:NVDA) drummed up hype over an AI-led boost for the sector in the coming months. 

Chipmakers and chip-adjacent stocks were among the top performers on the Nikkei. Advantest Corp. (TYO:6857)- which is also an Nvidia supplier- rose 4.2%, while Tokyo Electron Ltd. (TYO:8035)- Japan’s most valuable chipmaker- rose 3.4%. Chipmaker Dainippon Screen Mfg. Co., Ltd. (TYO:7735) was the top gainer on the Nikkei with a 7.8% surge.

SoftBank Group Corp. (TYO:9984), which is exposed to the chipmaking sector through its British chip designing unit Arm Holdings (NASDAQ:ARM), surged 4.3%. Arm jumped nearly 8% in aftermarket trade, tracking gains in Nvidia. 

The Nikkei had initially curbed some gains after purchasing managers index data showed both manufacturing and services activity worsened in February, ramping up concerns over slowing Japanese economic growth.

But weakness in the Japanese economy is expected to largely delay the Bank of Japan's plans to begin raising interest rates. An ultra-dovish BOJ was a key point of support for Japanese stocks over the past two years.


Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.