Nikkei Closes The Day Above 33000 Breaks 33 Years Record

Nikkei Closes The Day Above 33000 Breaks 33 Years Record by Ashly Chole last updated on July 01, 2023

Nikkei Closes The Day Above 33,000, Breaks 33 Years Record

In historical turns of events, Nikkei (Japan's leading index) closed the day above the 33,000 level. If we look back, this is the first time ever in the last 33 years that Nikkei has managed to break that resistance level.

This surprising upside in Japan's main index comes due to the positive sentiment surrounding chip-related companies. This caused the technology companies, especially those involved in chip manufacturing, to gain substantial upside in the last few days.

If we look around, there's a lot happening in the technology sector. For starters, a 5.25% increase in the Softbank Group Corp was seen on the news that it will be forming a venture with OpenAI. In addition, Intel Corp is also talking with Arm for potential investment opportunities.

Toyota Motor Shares Up By 4.99%

Toyota Motor shares also jumped 4.99% after its announcement to launch EVs starting in 2026. This is a major move from the company's previous policy of staying with internal combustion engines.

Looking back at Nikkei, it maintained the bullish stance for the 3rd consecutive session and added 1.8% to finally close above 33,000. When checked last time, Nikkei's trading price was 33,018.65, which is just a few points above the 33K level.

On a global scale, most of the shares markets are positive ahead of the key data releases from the USA, Japan, & other big economies.

Overall, around 10 stocks in the Nikkei index gained upside, while 54 were down for the day. One of the biggest outlets was Eisai Co which gave up its 2.22% gains after gaining ground on Monday.

The auto sector also gained 3.4% and thus contributed towards the historical close above the 33K level. In fact, this sector was the best perform out of all the 33 sub-indexes in the Tokyo Stock Exchange.

Looking ahead, the BoJ decision and the Federal Reserve might affect the price action in the Nikkei index.