Japan’s Nikkei 225 index reaches 40,000 milestone amid tech rally

Japan’s Nikkei 225 index reaches 40,000 milestone amid tech rally

TOKYO (AP) — Japan’s Nikkei 225 index soared to a record high on Monday, breaking the 40,000 mark for the first time in its history, as investors snapped up technology shares amid optimism about the global economic recovery.

The benchmark index closed up 0.5% at 40,109.23, after briefly touching 40,314.64 in morning trading. The Nikkei has gained 28% this year, outperforming other major markets, thanks to strong earnings growth and a weaker yen that boosts exporters.

A person walks in front of an electronic stock board showing Japan’s Nikkei 225

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Technology shares led the rally, following the footsteps of their U.S. counterparts, which hit new highs last week after Nvidia reported stellar results and announced a stock split. Nvidia’s shares surged 21% on Friday, lifting other chipmakers and hardware companies.

People walk in front of an electronic stock board showing Japan’s Nikkei

In Japan, Sony, Panasonic, Toshiba, and Hitachi all rose more than 2% on Monday, while SoftBank Group, which owns a stake in Nvidia, jumped 3.6%. Nintendo, which uses Nvidia’s chips in its Switch console, gained 4.2%.

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The Nikkei’s milestone came ahead of China’s annual political meeting, known as the “Two Sessions”, which starts on Friday. Investors are watching for any policy announcements that could affect the world’s second-largest economy and its trade relations with the U.S. and other countries.

China’s Shanghai Composite index edged up 0.3% to 3,034.78, while Hong Kong’s Hang Seng index slipped 0.5% to 16,500.50. South Korea’s Kospi index rose 0.4% to 2,101.96, while Australia’s S&P/ASX 200 index fell 0.6% to 6,762.30.

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People walk in front of an electronic stock

 

U.S. futures pointed to a lower open on Wall Street, with the Dow Jones Industrial Average down 0.3% and the S&P 500 and the Nasdaq Composite down 0.4%. Oil prices were little changed, with U.S. crude at $61.50 a barrel and Brent crude at $64.53 a barrel.

Source : AP NEWS

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