Nikkei index hits Japan’s economic “bubble” peak era in 1990‎

Japanese Nikkei index rose today, Friday, to its highest level since August 1990, during what is known as the economic “bubble” era in the country, driven by a group of positive factors such as strong earnings, an economy that shows signs of recovery, and optimism about the US debt ceiling talks.

According to “Reuters”, the Nikkei index jumped to 30,924.57 points, before ending the session, up 0.77 percent, at 30,808.35 points, in the seventh consecutive session of the rise.

The broader Topix index continued to rise, recording 2171.37 points, before falling, ending the session with 0.18 percent gains at 2161.69.

The rise in Japanese stocks was supported by a strong earnings season in general, the weakness of the yen, which was reinforced by the expectations of the Bank of Japan continuing stimulus for a longer period, as well as the economy, which began to show signs of recovery after the Covid pandemic.

The Nikkei index, during its rise to a 33-year peak, drew momentum from growing optimism that US lawmakers would reach an agreement on the debt ceiling and avoid a catastrophic default.

Among the 33 sectors on the Tokyo Stock Exchange, the precision machinery sector led the rise, rising 1.43 percent, followed by the services sector, up 1.35 percent, and machinery, which rose 1.08 percent.

Uniqlo store operator Fast Retailing was the biggest gainer by points on the Nikkei index, rising 2.19 percent.

Shares of chipmakers started Friday strongly in the wake of the rise in the prices of their counterparts in the United States, but they lost their gains or recorded a sharp decline later.

Advantest shares rose 3.35 percent initially, but ended the day with the worst performance on the Nikkei index, falling 2.86 percent.

Financial sector stocks fell 1.56 percent after hitting a two-month high on Thursday.