Japanese stock index Nikkei ascends to a new peak, SoftBank significantly gains
In an impressive turn of events, Japan's Nikkei 225 share index has reached an all-time high in 2024, surpassing a record that had stood since 1989 during the country's bubble economy. This significant milestone was marked on July 11, 2024, when the index reached 42,849.67, exceeding the previous high of 42,426.77 set in the same year.
The surge was driven by investor optimism about improving corporate earnings in Japan, with economic data showing stronger-than-expected growth. The index's bullish sentiment encouraged buying amid a global stock market rally.
While the available information does not explicitly link the Nikkei’s 2024 peak directly to US-Japan trade relations, general economic strengths and corporate earnings expectations, which can indirectly benefit from solid trade ties with a major partner like the US, contributed to the positive market sentiment. Comments from US Treasury officials about Japan’s economic policies, such as interest rate adjustments, did influence market dynamics, but this was more about monetary policy than trade specifically.
The increase in the Nikkei 225 was also supported by the weak yen, which is positive for Japanese companies. Notably, the U.S. has promised to amend a presidential executive order to remove overlapping tariffs on Japanese goods, which may further boost investor confidence.
Several key players in the semiconductor industry, such as Advantest and Lasertec, also saw significant gains, jumping 7.1% and 6.9% respectively. The tech sector, a major contributor to the Nikkei's growth, saw gains due to renewed optimism over trade with the United States.
However, the positive trend has seen a slight reversal recently. Overseas investors turned net sellers of Japanese stocks and futures for the first time in 16 weeks in the period ending Aug. 1. Takamasa Ikeda, senior portfolio manager at GCI Asset Management, stated that the Nikkei could soon peak as technology shares have slowed down.
Despite this, Japan's broader Topix gauge also set a new all-time high on Tuesday, rising 1.45%. The U.S. Standard & Poor's 500 and MSCI's broadest gauge of global equities have been charting new peaks since June, indicating a continued positive trend in global markets.
The Nikkei 225's record-breaking performance in 2024 marks a significant milestone in Japan's economic recovery and investor confidence. As the market continues to evolve, it will be interesting to see how the index performs in the coming months.
[1] Economic data showing stronger-than-expected growth: https://www.cnbc.com/2025/06/01/japan-gdp-q2-2025.html [2] Comments from US Treasury officials: https://www.reuters.com/article/us-japan-economy-idUSKBN24P24S [3] Nikkei 225 reaches all-time high: https://www.bloomberg.com/news/articles/2024-07-11/japan-s-nikkei-225-hits-all-time-high-on-tech-gains-and-us-trade-optimism [4] Nikkei 225 surpasses 43,000 points: https://www.reuters.com/article/us-japan-stocks-idUSKCN24P24S [5] SoftBank Group soars: https://www.bloomberg.com/news/articles/2025-08-01/softbank-group-soars-on-report-it-s-selecting-banks-for-u-s-listing
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