Nikkei Average Ends at Record High on High-Tech Popularity

Tokyo, May 22 (Jiji Press)–Japan’s key Nikkei 225 stock average soared to hit a fresh record closing high on Friday, reflecting the popularity of high-technology issues. The index of 225 issues listed on the Tokyo Stock Exchange’s Prime top-tier section rose 1,654.93 points, or 2.68 pct, from the previous day to close at 63,339.07, rewriting the previous all-time closing high of 63,272.11, marked on May 13. Investors rushed to buy artificial intelligence- and semiconductor-related issues, especially technology investor SoftBank Group, on the back of a rise in the U.S. SOX Philadelphia semiconductor index on Thursday. Market sentiment improved also thanks to overnight gains in the three major U.S. stock indexes following drops in crude oil prices on speculation over progress in peace talks between the United States and Iran. Despite lingering uncertainties over the Middle East situation, an official of a major securities firm said, “Market participants reacted positively to the two sides likely continuing their peace talks.” U.S. Secretary of State Marco Rubio on Thursday told reporters that there were some good signs in the talks. Pointing to the Nikkei average gaining over 1,700 points at one point on Friday afternoon, an official of a midsized securities firm voiced anticipation for next week’s trading, saying that the climb “reflected the strengthening of the (Tokyo) stock market.” Meanwhile, as nearly 40 pct of Prime-section stocks declined on Friday, there are also concerns that investment funds may be becoming overly concentrated in AI-related issues. Against the backdrop of a recent sharp rise in long-term interest rates, selling hit sectors with heavy borrowing, such as real estate. Construction issues also fell across the board, as rising material costs driven by concerns over crude oil supply fueled fears of worsening business performance. END [Copyright The Jiji Press, Ltd.]