Japanese Stocks At Multi Year High

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Japanese Stocks At Multi Year High

Japanese Stocks At 34-Year High Amid Tech Rally

The stocks of the Japanese firms have set a new record as they are at 34-year highs. The tech rally mainly fuels the appreciation in Japan's stocks - Several chip-related tech stocks in Japan made significant gains due to a weaker Yen (JPY) and increased exports.

The rise in tech stocks also allowed the Nikkei index to reach the historic level of 34316, with a gain of +1.6% during the session. The last time the Nikkei index was above the 34K level was in 1990!

Topix Crossed 2440 Level

Like the Nikkei, the Topix index reached the 2440 level with a +1.12% change. Once again, that's a new record only seen in 1990!

The rise of the Nikkei beyond the 34K level led to more inflow of funds into the Japanese stocks, which led to more upside. The upside in the Nikkei is also driven by the Nasdaq index, which turned higher amid a bullish trend in the tech stocks.

significant tailwind for the Nikkei index is a weaker Yen, which has increased exports. The rise in the dollar against JPY is due to the inflation data that is regarded as a high volatility event by the markets.

Simply put, a weaker Yen allows export-oriented firms to earn more profits from overseas clients, leading to higher stock prices.

One company that helped uplift the Nikkei was Fast Retailing, which jumped by almost 2.64% in a single day. Similarly, Tokyo Electron, a prominent Japanese stock market name, showed a 2.01% upside. Furthermore, a 5% gain was seen in the Kyocera stock, which is involved in the ceramics business.

Daiichi, a part of the Topix index, showed 5% while Nintendo (a famous game maker) saw its stocks rise by 3.87% during the day.

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