From ABC News:

Japan’s Nikkei 225 index reached a record high on Thursday, surpassing its previous peak set in 1989 before the financial bubble burst. The index closed at 39,098.68, up 2.2%, marking a return to levels not seen in 34 years as key economic indicators continue to weaken.

Heavy buying of computer chip-related shares fueled Thursday’s rally, with companies like Nvidia seeing tripled revenue from artificial intelligence. The market’s sharp gains in recent months have been driven by foreign investors, with the Bank of Japan maintaining easy money policies to spur growth and inflation.

With share prices in Tokyo rising 15% in the past three months, corporate earnings and governance reforms have increased the appeal of Japanese companies. A generational shift in investor sentiment, coupled with changes to investment programs and increasing foreign investment, are contributing to the market’s performance.

Despite foreign investors seeking bargains in Japan’s market, experts maintain that shares are not overpriced compared to other global markets. The price-to-earnings ratio of the Tokyo market is 16, lower than the S&P 500 and India. Meanwhile, the Chinese stock market faces ongoing challenges following a major meltdown in 2015.



Read more at ABC News: Japan’s Nikkei stock index breaks its 1989 record and surges to an all-time high