Japan’s Nikkei Index Breaches 40,000 Points For The First Time

The 225-issue Nikkei stock average continued its rally on Monday, surpassing the 40,000-mark for the first time and setting a new intraday record on the back of enthusiasm from global investors, reported Elizabeth Beattie for Japan Times.

Both the Nikkei and the Topix have exceeded bubble-era highs over the past few weeks.

The market opened at 40,201.76 before reaching a high of 40,314.64 just before 11 a.m. It closed at 40,109.23.

Daishi Sasaki, an executive at Mizuho Securities, commented, “With the Nikkei index finally reaching a milestone of the 40,000 level, we believe this momentum is a positive factor for Japan and its market.”

The Topix dipped and then rose Monday morning, remaining above the 2,700 mark before falling again in the early afternoon. It closed at 2,706.28.

Both the Nikkei and the Topix have exceeded bubble-era highs over the past few weeks. Analysts note that unlike in the era of dizzying real estate prices and frenzied art acquisitions, this time stock prices are backed up by earnings.

The Nikkei’s smashing of previous records is credited in part to the weakness of the yen against the dollar – a boon for exporters – as well as an investor pivot away from China’s faltering stock market.

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