Nikkei and Topix hit record highs driven by strong earnings optimism and weaker yen

From Kyodo News: 2024-07-04 05:39:08

The Nikkei and Topix stock indexes closed at all-time highs on July 4, 2024, driven by strong gains in technology and exporter shares amid hopes for robust earnings with a weaker yen. The Nikkei ended at 40,913.65, up 0.82%, while the Topix finished at 2,898.47, up 0.92% from previous records.

Gainers on the Prime Market in Tokyo were nonferrous metal, transportation equipment, and bank shares. The U.S. dollar fell to the lower 161 yen range after potential U.S. labor market slowdown data raised expectations of a Federal Reserve interest rate cut, supporting the yen’s decline.

The benchmark 10-year Japanese government bond yield fell to 1.080%, tracking U.S. Treasury yields. Exporters benefitted from the yen’s depreciation, boosting overseas profits. The lack of Finance Ministry intervention and rising long-term interest rates in Japan also contributed to market gains.

The recent surge in Topix and Nikkei indexes was supported by foreign investor activity and increasing interest from domestic and foreign investors on strong corporate earnings and economic recovery prospects. The ongoing weakness in the yen and AI technology boom further boosted market sentiment.



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