The Nikkei average continues to rise, approaching an all-time high due to major trading; growth is sluggish due to selling in semiconductor-related products | Reuters

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February 16: At the Tokyo stock market, the Nikkei Stock Average continued to rise to 38,487.24 yen, an increase of 329.30 yen from the previous business day. Photo taken at the Tokyo Stock Exchange in October 2020 (2024 Reuters/Kim Kyung-Hoon)

TOKYO (Reuters) – On the Tokyo stock market, the Nikkei Stock Average continued to rise to 38,487.24 yen, up 329.30 yen from the previous trading day. With the rise in U.S. stock prices, buying became dominant, and the stock set new highs every day since the bursting of the bubble economy, at one point approaching an all-time high of 50 yen. The trading value of the TSE prime market approached 7 trillion yen, making it a major trading event. After a round of buying, semiconductor-related stocks were pushed down by profit-taking selling, and the index’s rate of increase slowed, but many believe it is only a matter of time before it reaches a new all-time high.

The Nikkei Stock Average started the day 359 yen higher as US stocks rose due to renewed expectations for an early interest rate cut. After that, the price continued to rise, rising by 707 yen to 38,865 yen.06, approaching the highest closing price set in December 1989 (38,915.87 yen).

After the buying cycle, semiconductor-related stocks, which had been the driving force behind the Nikkei 225 index and had a high contribution to the index, weakened, and the index also slumped. In the market, one domestic securities strategist said, “Due to the weekend factor, it’s easy to turn to profit-taking after the price reaches a high.” (Domestic securities strategist)

TOPIX also continued to rise, closing 1.27% higher at 2,624.73 points, also hitting a post-bubble high. The TSE Prime Market Index rose 1.27% from the previous business day to 1,350.82 points. The trading value of the prime market was 6,721,203 million yen, exceeding 5 trillion yen for the sixth consecutive business day. Since last year, it has ranked second in the top selling prices.

Next week, Nvidia (NVDA.O), opens new tab, is due to close its financial results on the 21st (early morning of the 22nd Japan time), and there is growing interest in the market. Katsuyoshi Sakase, head of market information at Aizawa Securities, pointed out, “Recently, there has been an increase in positive information regarding the development of artificial intelligence (AI) models, and speculation is spreading that demand will accelerate again.” Expectations are high that the Nikkei Stock Average will reach a new all-time high next week, as major semiconductor-related stocks are expected to soar after NVIDIA’s earnings results. Major stocks include Fast Retailing (9983.T), opens new tab, Recruit Holdings (6098.T), opens new tab, Bandai Namco Holdings (7832.T), opens new tab, Chugai Pharmaceutical (4519.T), opens New tab is solid. Trend Micro (4704.T), opens new tab fell more than 17%, and Lasertec (6920.T), opens new tab fell significantly, dropping more than 4%. SoftBank Group (9984.T), opens new tab also fell more than 2%. In the emerging stock market, the Tokyo Stock Exchange Growth Market 250 Index rose 3.8% to 753.25 points, increasing for the fourth day in a row. GNI Group (2160.T), opens new tab and WealthNavi (7342.T), opens new tab rose 18-20%, pushing the index higher.

Regarding the number of rises and falls in the TSE prime market, 1,391 issues rose (83%), 237 issues fell (14%), and 29 issues remained unchanged (1%).

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