Nikkei Average Hits New Record High above 52,000

Tokyo, Oct. 31 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average hit a new record high for the third straight day on Friday, closing above 52,000 for the first time ever, backed by strong corporate earnings and the yen’s weakening. The Nikkei average finished at 52,411.34, up 1,085.73 points, or 2.11 pct, from Thursday. The broader TOPIX index rose 31.04 points, or 0.94 pct, to 3,331.83, also a record high. In October, the key index surged 7,478.71 points, or 16.6 pct, marking the seventh straight monthly advance. The point gain was the largest ever for a month, while the percentage gain was the largest since 20.1 pct in October 1990. On Friday, a sense of security in buying stocks spread among investors after key events earlier this week, including the U.S.-China summit and monetary policy meetings in the United States and Japan, market sources said. “Investors who had sold stocks out of caution ahead of the BOJ meeting apparently moved to buy back shares,” said an official of a major brokerage firm. Semiconductor-related stocks, in particular, attracted purchases following the overnight releases of strong earnings reports by U.S. technology giants Apple and Amazon.com. “Although there are concerns about the market overheating, strong earnings and capital policy revisions are being well received by overseas investors,” said an official of a midsize securities firm. In the currency market, the yen widened its losses against the dollar amid speculation that the Bank of Japan could delay its next interest rate hike. At 5 p.m., the dollar stood at 154.30-30 yen, up from 153.42-44 yen at 5 p.m. Thursday. The euro was at 1.1564-1565 dollars, down from 1.1619-1619 dollars, and at 178.46-47 yen, up from 178.23-29 yen. END [Copyright The Jiji Press, Ltd.]