Nikkei index hits 34-year high thanks to technology stocks

Japan’s Nikkei index rose to its highest level in 34 years at the close thanks to the rise in shares of technology companies that tracked their American counterparts on Tuesday night, and the decline of the yen led to an increase in the profits of exporters.

According to Reuters, the Nikkei index jumped 2.01% to close at 34,441.72 points, recording its highest closing level since February 1990. The index exceeded the level of 34,000 points for the first time since March 1990.

The broader Topix index rose 1.3% to 2,444.48 points, reaching its highest level since March 1990.

“The Nikkei rose to the level of 34,000 points, which prompted investors to buy more shares,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

The Standard & Poor’s 500 and Dow Jones indexes closed lower on Tuesday night, but the Nasdaq index ended trading higher.

The yen fell against the dollar in Asian trading before the release of US inflation data later this week, which may affect the policy of the Federal Reserve (the US central bank).

The decline in the yen helps exporters because it increases the value of foreign profits in yen when companies return them to Japan

Shares of Fast Retailing, which operates the Uniqlo clothing retail chain, jumped 3.83% to become the largest supporter of the Nikkei index.

Tokyo Electron, a manufacturer of chip-making equipment, rose 1.91 percent. Kyocera Ceramic Manufacturing Company shares gained 6.09%

Sony Group shares rose 3.825, becoming the largest supporter of the Topix index. Keens Electronic Appliances shares increased 4.86%.Computer hardware maker Fujitsu shares fell 1.94% and was the biggest percentage loser.

Of the 225 stocks listed on the index, 176 stocks rose, 47 declined, and two stocks remained unchanged.