Tokyo stock market Nikkei index climbed sharply on the 29th, up 714.12 points over the previous trading day to close at 27568.15 points, up 2.66%, a new high of about 30 years and 4 months since August 1990, and the highest value since the bubble economy period. For the first time after 29 years and 9 months, the final market rose above the 27,000-point mark. Boosted by market expectations for additional economic measures in the U.S. and the closing gains in U.S. stocks overnight, the Nikkei was dominated by buying.
The passage of a new round of stimulus bill in the U.S. brought positive results, and buying by short-term investors pushed stock prices up at an accelerated pace. As economic measures in response to the New Crown epidemic, countries around the world adopted large-scale monetary easing policies, and a large amount of funds poured into the stock market, and expectations of further recovery of the economy, which was in the doldrums due to the New Crown epidemic, rose, which was the backdrop for the Nikkei’s record high. Japanese stocks, which are highly linked to the world economy, also brought together a large number of investors to buy.
Earlier this year, the Nikkei plunged, as did other major global indices, due to the outbreak of the new crown outbreak. However, with the recent acceleration of the development of the new crown vaccine and the recovery of The Japanese economy, the Nikkei gradually began to move higher.
The head of an asset utilization company pointed out, “With the signing of the establishment of additional economic measures in the U.S. by President Donald Trump, the positive posture of investors has further strengthened.”
The Mainichi Shimbun reporter connected with the chief economist of IHS Markit, a leading global consultancy, to interpret the recent trend of Japanese stock market. Harumi Taguchi pointed out that the Nikkei is mainly composed of export-oriented companies. Because of the positive news on vaccine development, the market is expecting a strong recovery of the global economy, and the share prices of Japanese export-oriented companies have been pushed up as a result.
The Nikkei average share price in the Tokyo stock market by midday on the 30th was 27,412 yen and 24 cents, a slight decline of 155 yen and 91 cents from the closing value reported on the 29th.
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