Japan's Nikkei again hits 34-year high on Wall Street record
JAPAN’S Nikkei share average again rose to a 34-year peak on Tuesday (Jan 23), buoyed by Wall Street’s climb overnight to a fresh record high and the Bank of Japan’s (BOJ) decision to keep ultra-easy policy settings intact.
The Nikkei rallied as much as 1.2 per cent to 36,984.51, a level not seen since February 1990, before a wave of selling as traders locked in gains following a world-beating surge so far this year.
Japan’s benchmark index closed 0.08 per cent lower at 36,517.57, putting its gains for 2024 at 9.12 per cent. It stands head and shoulders above major global peers, many of which are negative for the year.
“People are just taking profits,” and the uptrend remains intact, said Shoki Omori, chief Japan desk strategist at Mizuho Securities.
The BOJ’s easy monetary policy will support the stock market, taking the Nikkei to 38,000 in coming months, Omori added.
Japan’s central bank left its short-term interest rate target at -0.1 per cent and that for the 10-year bond yield around 0 per cent, as widely expected.
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Technical indicators have been flashing red, and analysts have been warning daily that a Nikkei pullback is likely. The relative strength index (RSI) still stands at 75.7, well above the 70 line that signals overbought conditions.
Several heavyweight Nikkei stocks that had posted gains early in the session slumped by the close.
Chip-sector giant Tokyo Electron rose more than 1 per cent at one point but closed down 1.74 per cent at a session low. Advantest rose 1.84 per cent to scale a new record high but finished down 1.5 per cent.
AI-focused startup investor SoftBank Group climbed 1.22 per cent to touch a four-month top before ending with a 0.31 per cent loss. Sony Group added 0.78 per cent to reach a two-year high before sliding 0.71 per cent. REUTERS
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