Nikkei closes above 24,000 for 1st time in over 26 Years

January 23, 2018

Tokyo- Stocks surged on the Tokyo Stock Exchange Tuesday in the wake of Wall Street's rise overnight, pushing up the benchmark Nikkei average to the first close above 24,000 in more than 26 years.

The 225-issue Nikkei average ended up 307.82 points, or 1.29 percent, at 24,124.15, the best finish since Nov. 14, 1991. On Monday, the key market gauge climbed 8.27 points.

The TOPIX index of all first-section issues rose 19.15 points, or 1.01 percent, to close at 1,911.07, a level unseen since June 17, 1991, after climbing 2.18 points the previous day.

Stocks were firmer from the outset of Tuesday's trading as exporters attracted purchases, backed by record-breaking performances of key US stock indexes on Monday, brokers said.

The key indicators of the Tokyo market rose further after the Bank of Japan, at a two-day monetary policy meeting that ended Tuesday, decided to keep its current massive monetary easing policy unchanged.

Futures-led buying was the main driver of Tokyo stocks, market sources said.

The Tokyo market gathered steam on "expectations for Japanese and US companies to post brisk earnings" amid the recovery of the global economy, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

In addition, investors believe that US fiscal reform plans, including a corporate tax reduction, will further push up the Japanese and US markets, Fujii indicated.

Tuesday's market was likely led by speculative players who were "forced to buy back futures" after it turned out that their forecast of a sluggish market did not come true, Fujii said.

The Nikkei may stay above 24,000 only temporarily, as the recent market condition is "not so good," an official of a bank-affiliated securities firm said, noting that the advance-decline ratio has been sluggish recently.

On Tuesday, rising issues far outnumbered falling ones 1,649 to 346 in the TSE's first section, while 68 issues were unchanged.

Volume rose to 1,415 million shares from 1,342 million shares on Monday.

Realtors, including Mitsui Fudosan, Sumitomo Realty and Mitsubishi Estate, were buoyant after a private research institute said Monday that the average unit price of new condominiums put up for sale in the greater Tokyo area in 2017 hit a 27-year high.

Sony attracted purchases thanks to a huge box-office success of the remake version of its film Jumanji.

Electronics retailer Yamada Denki was downbeat after a media report on Tuesday that it will post disappointing earnings for April-December last year.

Other major losers included oil firms Cosmo Energy and Idemitsu, airline ANA and Nippon Paint.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average surged 330 points at 24,120. Jiji Press