Japan's Nikkei crosses 39,000 as robust earnings, investor-friendly measures drive risk-on sentiment

February 23, 2024

Japan's Nikkei 225 hit a record high Thursday, powered by banking, electronics and consumer stocks as robust earnings and investor-friendly measures fuel a blistering rally in Japanese equities this year. The Nikkei 225 jumped nearly 2% to hit 39,029, surpassing the previous record high of 38,915.87 reached in 1989. Japan Inc's solid third-quarter corporate earnings have prompted Bank of America equity strategists to upgrade their 2024 year-end forecasts for the Nikkei 225 to 41,000 from 38,500. They raised their forecasts for the Topix to 2,850 from 2,715. The rally has also been supported by a weaker yen, which has shed about 6% against the dollar so far this year and seems on track to drop to to 33-year lows touched late last year.