The Tokyo stock market continued to rise on the 16th. The Nikkei Stock Average rose by more than 700 yen at one point, approaching its all-time high set in December 1989. In the United States, the S&P 500 stock index has once again hit a new high on the back of expectations for a soft economic recovery and expectations for interest rate cuts in the second half of the year, and investor sentiment is improving. Industries sensitive to overseas economies, such as trading companies, mining, and steel, rose. Domestic demand-related industries such as real estate and services are also strong.
- TOPIX is 0.8% higher than the previous day at 2613.29 – as of 11am
- Nikkei Stock Average rose 0.7% to 38,406.85 yen
The Nikkei average rose to 38,865.06 yen around 10 a.m. The stock is now about 50 yen away from the highest price of 38,915.87 yen based on the closing price.
In the foreign exchange market, the yen exchange rate has remained stable at around 150 yen to the dollar, providing support for export-related stocks. Toyota Motor Corporation also rose by more than 2% at one point, contributing to the rise in the TOPIX.
On the other hand, some semiconductor-related stocks, which had started to be bought earlier, have fallen into negative territory compared to the previous day, weighing on the top of the stock index. In the morning, semiconductor manufacturing equipment giant Applied Materials announced a bullish earnings outlook after the close of trading, and buying was dominated by positive sentiment.
Hiroshi Matsumoto Senior Fellow, Pictet Japan
- I think some investors are looking at the strong trend in Japanese stocks and buying all the stocks that make up the stock index.
- The market is in such a euphoric mood that it is no longer possible to explain logically how many times the price/earnings ratio (PER) is.
insight
- 32 out of 33 industries on the TSE rose
- Oil and coal products have the highest rate of increase, while metal products have the highest rate of decline.