🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Japan’s Nikkei hits record high above 41,000 as post-BOJ rally continues

Published 03/21/2024, 09:16 PM
© Reuters.
USD/JPY
-
JP225
-
TOPX
-
7201
-
7267
-
7269
-

Investing.com-- Japan’s Nikkei 225 index rose in morning trade on Friday, notching a record high above key levels as investors remained largely upbeat over the Bank of Japan remaining accommodative in the near-term.

The Nikkei 225 rose as much as 1% to a record high of 41,133 points, before capitulating some gains. The broader TOPIX also rose 0.5% to a record high. 

Japanese stocks extended their gains from Tuesday after the BOJ said it will keep monetary conditions largely accommodative in the near-term, even as it hiked interest rates for the first time in 17 years and ended a bulk of its asset purchase programs.

But the BOJ still warned of some near-term weakness in the Japanese economy, particularly in private consumption, which is expected to keep monetary policy largely loose.

Sharp surges, export-oriented sectors gain on weak yen 

Electronics maker Sharp (OTC:SHCAY) Corp (TYO:6753) was the top gainer on the Nikkei, rising 6.4% after reports said the firm was planning to scale back its laggard liquid crystal display business. 

Automaking stocks Nissan Motor Co (TYO:7201), Suzuki Motor Corp. (TYO:7269) and Honda Motor Co Ltd (TYO:7267) rose more than 3% each as improved global risk appetite and a dovish near-term outlook for the BOJ dented the Japanese yen.

The USDJPY pair surged back above the 151 level on Thursday.

Weakness in the yen benefited most other export-oriented sectors on the Nikkei. 

Nikkei rally to lose steam after 41,000- Citi

But Citi analysts said in a recent note that while the Nikkei was likely to rally as far as 41,000 in the immediate aftermath of the BOJ, its gains above that level appeared doubtful.

Citi analysts expect the Nikkei to turn rangebound around current levels, especially as Japanese monetary conditions eventually tighten this year.

Strong consumer price index data for February already lent some credence to the BOJ’s pivot, as inflation shot back up and above the central bank’s annual 2% target. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.