Nikkei posts biggest points gain in fiscal year

Japan’s Nikkei index rose at the close on Friday, led by shares of chip-related heavyweights, and recorded a record fiscal year gain in terms of points amid heavy purchases from foreigners.

According to Reuters, the index recorded successive record highs this month after on February 22, it exceeded levels last seen in 1989 during the country’s economic bubble.

This rise was supported by foreign purchases due to the decline in the yen and expectations of the Bank of Japan sticking to its monetary easing policy.

The index rose 12,328 points in the fiscal year ending on Friday, recording its largest gain ever. It rose 44% during the year, the largest rise since the fiscal year ending in March 2021.

The Nikkei rose 0.5% to 40,369.44 points at the close, offsetting some of the previous session’s losses.

“Investors remain cautious about potential intervention in the currency market, but they generally view the yen’s decline as a positive factor for local stocks,” said Fumio Matsumoto, chief strategist at Okasan Securities.

The yen fell to its lowest level in 34 years against the dollar this week, prompting local authorities to hold an emergency meeting in a sign that Tokyo is close to intervening in the market.

Tokyo Electron rose 0.79% and Advantest rose 1.85%, both related to chips.

The real estate sector increased 1.96%, rising 16% this month, the largest rise among sectors. The sector received support from a government survey issued this week, which showed that land prices in the country rose during 2023 at the fastest pace in 33 years.