The Nikkei Stock Average closed at 38,157 on Thursday, marking a 1.2 per cent increase from the previous day and reaching its highest level in 34 years, according to a news story on Japan's Nikkei stock exchange website on Thursday. The rise was primarily driven by chip-related stocks and followed gains in the U.S. stock markets. This is the first time since January 11, 1990, that the Tokyo benchmark index has surpassed the 38,000 mark at the end of a trading day. The positive performance of individual stocks can be attributed to favorable corporate governance and strong financial results announced by major companies for the April to December period of 2023. On Thursday, three major insurance companies – Tokio Marine Holdings, Sompo Holdings, and MS&AD Insurance Group Holdings – achieved new record highs after disclosing their earnings for the same period. Another notable performer was the online retailer and technology company Rakuten Group, which experienced a significant surge of 16 per cent at one point following the release of its earnings on Wednesday. Tokyo Electron, considering a stock split, reached a new daily high. Notably, three companies – Tokyo Electron, Advantest, and Shin-Estsu Chemical – were responsible for pushing the Nikkei 225 up by more than 220 points. Many market experts hold a positive outlook for Japanese stocks, citing robust corporate earnings and expectations of increased profits for the current and upcoming fiscal years. Nobuhiko Kuramochi, a market strategist at Mizuho Securities, stated that recent corporate performances have been driving the soaring stock prices over the past month, bringing the Nikkei Average close to its all-time high.
