Surge in Tokyo Stock Exchange with TOPIX at Highest Level Since 1980s

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Surge in Tokyo Stock Exchange with TOPIX at Highest Level Since 1980s

The Tokyo Stock Exchange experienced a significant surge on July 4th, with the benchmark Nikkei 225 index hitting a record close of 40,913.65. This rise in the index was largely attributed to the continuous increase in high-tech stocks and the support provided by the weakened yen that boosted shares of prominent exporters. Furthermore, the TOPIX board also achieved a milestone by closing at a record high of 2,898.47 points after gaining 26.29 points on the same day.

The TOPIX index surpassing its previous record close dated back to December 1989, during the period of the asset-inflated “bubble” economy. On July 4th, the TOPIX briefly exceeded 2,900, signifying the strength of the market. The surge in the Tokyo Stock Exchange was also influenced by the positive performance of high-tech stocks, particularly semiconductor stocks, on the New York Stock Exchange.

Following a record high in March, the Nikkei average had experienced a dip to the 36,000 range. However, the trend reversed from mid-June onwards as the devaluing yen sparked an increased interest in export-related stocks, notably in the automotive sector. The Nikkei index, which is based on the performance of 225 selected stocks, showcases the market sentiment and performance of key players in the exchange. Similarly, TOPIX, which calculates based on the market capitalization of around 2,000 listed companies, particularly those on the Prime Market, established a baseline of 100 points on January 4, 1968, and serves as a reflection of the market's health and growth over time.