Japan's Nikkei 225 share benchmark reached a significant milestone on Monday, surpassing the 40,000 mark for the first time in its history. The index showed a strong performance, gaining 0.8% to reach 40,226.83 by midday in Tokyo.
The surge in the index was largely driven by the robust demand for technology shares, particularly in the computer-chip sector. Renesas Electronics Corp. saw a notable increase of 5.8%, while Advantest Corp. and Olympus also experienced gains of 3.9% and 7.4%, respectively.
Investor optimism in the Japanese market has been fueled by the anticipated growth in technology associated with artificial intelligence. Additionally, the Bank of Japan's accommodative monetary policies, which involve injecting liquidity into the economy, have contributed to the positive sentiment. These policies have resulted in a weaker Japanese yen against major currencies, benefiting exporters and boosting their profits.
The positive momentum in Tokyo's stock market was in line with the gains seen on Wall Street the previous Friday. The S&P 500 rose by 0.8%, the Dow Jones Industrial Average increased by 0.2%, and the Nasdaq composite climbed by 1.1%. The surge in artificial intelligence-related technology stocks, such as Dell, which soared by more than 30%, further fueled the market rally.
