Thanks for joining me. Japan’s key Nikkei index closed above the 40,000 mark for the first time today, following gains on Wall Street.
The benchmark Nikkei 225 index added 0.5 percent, or 198.41 points, to end at 40,109.23, but the broader Topix index slipped 0.1 percent, or 3.14 points, to 2,706.28.
The dollar stood at 150.28 yen, compared with 150.11 yen seen Friday in New York.
“The US high-tech sector including chips rallied on the back of falls in US long-term yields, which prompted purchases” of high-tech equities in the Tokyo market, IwaiCosmo Securities said.
Tokyo and other major global shares have steadily gained since last year, and analysts predict the Nikkei should gain even further, lifted by rallying Wall Street, robust corporate earnings and strong hopes for AI technologies.
On February 22, the Nikkei finally broke through a record high set just before an asset bubble in Japan catastrophically burst in the early 1990s.
After the Nikkei climbed above the 40,000 mark during Monday’s trade, “profit-taking sales grew and capped the upward movement”, Daiwa Securities said.
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What happened overnight
Asian stocks were mostly higher ahead of China’s top annual political gathering, while Japan’s benchmark surpassed the 40,000 level for the first time.
Japan’s Nikkei 225 share index advanced 0.5p to 40,109.23, breaching the 40,000 level, after a big rally on Wall Street last week pushed US stocks to new heights.
Shares in Japan have tracked gains in other markets driven by expectations for strong demand for technology associated with artificial intelligence. They have also been boosted by continued easy credit policies with the Bank of Japan pumping money into the economy to help support growth.
Hong Kong’s Hang Seng fell 0.2pc to 16,558.00 and the Shanghai Composite index rose 0.2pc to 3,033.63.
All eyes will be on the National People’s Congress annual meeting in China that starts Tuesday, during which Beijing might announce steps to bolster an economy that is sagging under the weight of expanded government controls and the bursting of a real-estate bubble.
The Kospi in Seoul surged 1.2pc to 2,672.94 after a private-sector survey showed manufacturing activity expanding at a slower pace in February compared to previous months as overseas demand weakened.
Australia’s S&P/ASX 200 was down 0.1pc at 7,598.00, and in Bangkok the SET edged 0.1pc lower.
