Japan’s Nikkei 225 stock average climbed to a new all-time peak on Thursday, surpassing the 39,000 level for the first time since late 1989, supported by fresh trading data from the Tokyo Stock Exchange.
At the close on February 22, the Nikkei 225 finished at 39,098.68 points, up 2.19 percent from the previous session.
The prior high was set more than three decades ago in December 1989, when the index topped out at 38,957.44 points amid the asset-price boom that defined Japan’s economic landscape in the late 1980s.
The gauge has climbed more than 16 percent this year, drawing momentum from stronger shares in technology segments after optimistic financial signals from U.S. chipmaker NVIDIA. In its latest quarter, NVIDIA reported revenue of 22.1 billion dollars, a 265 percent increase, and net income of 12.29 billion dollars. These results underscored the global tech cycle that often lifts Japanese exporters and larger market players when dollar-denominated earnings translate into yen-denominated gains for the corporate sector. [Citation: Reuters]
Analysts cited by market observers noted that NVIDIA’s earnings strength provided a catalyst for Japanese equities to push toward new highs. Charu Chanana, a market strategist at Saxo Capital Markets, described the momentum as a clear driver behind the Nikkei’s record run. [Citation: Reuters]
Beyond corporate earnings, exchange-rate dynamics played a role. A softer yen tends to boost export margins and can lift the implied value of overseas revenues for many Japanese companies, contributing to broader market strength. Improvements in corporate governance across firms were also cited as supportive factors by analysts and investors alike. [Citation: Reuters]
Some institutions have raised their forecasts for the index. For instance, a number of strategists from Citigroup suggested a potential path to the 45,000-point mark for the Nikkei 225 in the coming period, reflecting continued confidence in the earnings outlook and the competitive position of Japanese exporters. [Citation: Reuters]
In the U.S., the broader market narrative was shaping up as well, with the S&P 500 recording a fresh milestone at the outset of February when it crossed the 5,000-point threshold, signaling a renewed appetite for large-cap equities on a global scale. [Citation: Reuters]
Market observers in Canada and the United States continued to monitor how this cross-border earnings and currency dynamic would influence portfolio strategies, dividend outlooks, and sector rotation as investors weigh the resilience of corporate earnings against macroeconomic risks. [Citation: Reuters]