©Reuters
Investing.com — Japan's benchmark Nikkei Stock Average soared above key levels in early trading on Monday, extending a technology-led rally, while positive economic indicators also weighed on sentiment towards the economy and the Bank of Japan. contributed to the improvement of management.
It rose by 0.8% to a record high of 40,308.0 points, breaking the 40,000 point mark for the first time in history.
Technology stocks remain the biggest drivers of the index, with semiconductor manufacturing and chip-related stocks posting sustained gains on persistent hype that artificial intelligence will drive a demand boom in the coming months.
Chip inspection equipment manufacturer Advantest Co., Ltd. (TYO:) rose 3.7%, near an all-time high; Tokyo Electron Ltd. (TYO:) hit a three-year high. SoftBank Group (TYO:) also traded near three-year highs.
The rise in tech stocks on Wall Street was a boon for Japanese stocks, especially as tech-heavy IXIC closed at a record high on Friday.
Japan's economy is showing signs of recovery, and inflation is heading towards easing
Key economic indicators released on Monday also showed a positive outlook for the Japanese market.
The Japanese economy rose 16.4% in the fourth quarter, far exceeding expectations, defying an unexpected slowdown in economic growth as corporate spending remained resilient.
Other data showed Japan's prices, a key indicator of inflation trends, unexpectedly fell to a six-month low in February. The numbers, which come amid widespread cooling in Japan's inflation, do not give the Bank of Japan the impetus to aggressively tighten monetary policy.
Although the central bank is still expected to raise interest rates from ultra-low levels by April at the earliest, financial conditions are likely to remain significantly easing, creating a favorable environment for Japanese stocks.
