Posted on 02/22/2024 7:51:41 AM PST by SeekAndFind
Feb. 22 (UPI) -- Japan's Nikkei stock index hit a record-breaking all-time high of 39,098.68 at the close of trading Thursday.
The index closed the day up 836.52 points, or 2.19%, propelling it to the mark that broke a record set in December 1989.
Thursday's surge was driven by semiconductor stocks, led by America's Nvidia Corp.
Nvidia sales were up well above market expectations, with a 3.7-fold sales increase and $12.3 billion in net profits, an 8.7-fold increase.
"Nvidia was able to surpass the high expectations placed on it, with the results clearly demonstrating the growing need for artificial intelligence," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.
Also giving the Nikkei an assist were higher profits from Toyota and Honda exports, aided by a weaker yen against the U.S. dollar.
Japan's Nikkei has seen an upswing this year, nearly 17% above 2023 levels.
In 1992, the Nikkei dropped under 20,000 points as Japan's inflated bubble economy of the 1980s burst.
In February 2021, the Nikkei climbed above 30,000 points for the first time.
The soaring stock market in Japan is occurring even as the Japanese economy contracted for the second straight quarter, slipping into recession, according to GDP numbers released Feb. 15.
In the October to December 2023 period, Japan's GDP declined by 0.4% on top of a 3.3% fall in the previous quarter, according to the Japanese government's Cabinet Office.
That fourth-quarter performance was a surprise, as economists had expected a 1.4% GDP expansion.
Japan's economy in 2023 was $4.2 trillion, not far behind Germany's GDP of $4.4 trillion.
(Excerpt) Read more at msn.com ...
Nikkei Index did hit an all-time high in the 1990s. On December 29th, 1989, it closed at 38,915.87, which stood as its record until February 21st, 2024, when it finally surpassed that mark.
it did reach a previous high in 1989 that was close. It then took over 34 years for the index to climb higher and set a new all-time record.
Many investors in the Japanese Stock market in the late 80's would be waiting over a generation to see yesterday's event ( or die before then ).
Inflation does that.
Just in time to purchase property in Hawaii.
let the good times roll
RE: Just in time to purchase property in Hawaii.
The Hawaii in the 1980s is not the same Hawaii it is today, and neither is San Francisco. The Japs know that.
I was working in Japan up through 1991. I have a lot of Japanese friends and former co-workers who seriously struggled with nothing but investment losses for a solid two decades. A couple had some US investments that did well and kept them afloat, but for the most part it was a lot of lost financial dreams.
Could it be due to Chinese money fleeing ChiCom control and confiscation?
When stocks hit an “all time high” it just means it will soon start going down. The only rule I know about stocks is to buy low and sell high. I assume others know this rule so I would expect some will be selling soon.
RE: I have a lot of Japanese friends and former co-workers who seriously struggled with nothing but investment losses for a solid two decades.
Yep. If you invested in the Japanese stock market frenzy of the late 1980’s when there was fear in the USA of the Japanese taking over everything (remember the Japs buying Rockefeller Center in the middle of Manhattan?) and the Dow Jones tanked in 1987, you would have had your investments MORE THAN HALVED by 1990.
And if you live long enough, it would take 34 FREAKING YEARS for you to recover your money ( which you still haven’t if you took account inflation ).
Seppuku will increase soon.
“When stocks hit an “all time high” it just means it will soon start going down.”
But this time is different
/s
A co-worker who’s heavy into Nvidia told me last week that NVDA wouldn’t ‘be allowed’ to crash because it’s an election year.
I told him 2008 was an election year.
As was 2000 and 2020. All were bubble crashes.
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