Japan’s stock market hits record highs, driven by auto, banking and technology sectors

(MENAFN)
Japan’s main stock indexes hit record highs on Thursday, driven by strong performance in the auto, banking and technology sectors as the market anticipates solid corporate earnings in the second half of the year. The broader Topix index hit a new record, surpassing its previous 34-year peak of 2,900.91 points earlier in the session. It closed up 0.92 percent at 2,898.47 points, surpassing its highest closing level since December 1989.

Toyota Motor Corp. led the pack, rising 1.98 percent, the biggest contributor to Topix gains. Honda Motor Co. also fared well, up 3 percent. In the banking sector, Mitsubishi UFJ Financial Group rose 1.47 percent, while Mizuho Financial Group posted a significant gain of 3.45 percent.

The Nikkei index mirrored the rally, closing at 40,913.65 points, surpassing its previous closing high set on March 22. Technology stocks led the rally, with chip testing equipment maker Advantest Inc. rising 2.14 percent. Technology investor SoftBank Group saw an even bigger gain, with its shares rising 4.53 percent.

Ojo Tsuboi, senior equity analyst at Daiwa Securities, commented that the momentum of the two indices is expected to continue until the end of the year. Investors are optimistic that local companies will raise their prospects, which will further strengthen market confidence and drive further growth in the Japanese stock market.

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