Nikkei Briefly Gains over 2,000 Points

Tokyo, Nov. 20 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average climbed more than 2,000 points at one point Thursday, as a wave of buying swept through semiconductor and artificial intelligence-related shares following the overnight release of strong earnings from U.S. chip giant Nvidia. Meanwhile, Japan’s key long-term interest rate reached its highest level in over 17 years, reflecting lingering worries over Japan’s fiscal condition ahead of a large-scale economic package. The Nikkei index closed the day’s session up 1,286.24 points, or 2.64 pct, from Wednesday, at 49,823.94, after rising to as high as 50,574.82, up 2,037.12 points, or 4.20 pct. As Nvidia’s earnings results highlighted a rise in AI demand, an official of a major securities firm said, “Fears that the (recent) AI boom may reach its end were put aside for now.” A weakening of the yen against the dollar also whetted buying appetite. Meanwhile, the yield on the most recent issue of 10-year Japanese government bonds, regarded as Japan’s key long-term interest rate, rose to as high as 1.835 pct at one point in interdealer trading, the highest level since June 2008. The climb came in response to higher U.S. long-term interest rates amid fading hopes for a possible interest rate cut in the United States, as well as concerns about a possible deterioration in Japan’s fiscal condition due to the upcoming economic measures by the administration of Japanese Prime Minister Sanae Takaichi. In the currency market, the yen was hit by selling tied to the gap between Japanese and U.S. interest rates, pushing the dollar above 157.50 yen during Tokyo trading, the highest level in about 10 months. At 4 p.m., the dollar stood at 157.73-73 yen, up from 155.51-52 yen at 5 p.m. Wednesday. END [Copyright The Jiji Press, Ltd.]