September 28, 2018 – The Nikkei Stock Average climbed to its highest level in nearly 27 years this morning, as a weaker yen supported exporters and investors expected favorable Japanese corporate earnings.
The 225-issue Nikkei index rose 405.66 points, or 1.70 percent, from yesterday to 24,202.40. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 23.93 points, or 1.33 percent, at 1,824.04.
All industry categories gained, led by pulp and paper, oil and coal product, and farm and fishery issues.
The market started on a high tone following a robust climb in U.S. technology shares last night, as investors were also heartened by the yen’s fall to a nine-month low against the U.S. dollar, boosting export-related issues, brokers said.
In the morning session, the Nikkei index hit its highest intraday level since Nov. 15, 1991, after rapidly climbing more than 7 percent in 11 trading days through Friday.
“Investors’ risk appetite grew on the yen’s further retreat against the dollar and solid U.S. durable goods orders for August released overnight,” said Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd.
He added that the Nikkei index could reach 25,000 points by the end of the year, supported by firm earnings reports from Japanese exporters expected due to the weaker yen.
On the First Section, advancing issues outnumbered decliners 1,775 to 286, while 42 ended the morning unchanged.
Among export-related issues, Sony rose 254 yen, or 3.8 percent, to 6,919 yen while Pioneer climbed 4 yen, or 3.5 percent, to 117 yen.
SoftBank Group gained 460 yen, or 4.2 percent, to 11,420 yen after the company started a taxi-hailing service using a smartphone app developed by Chinese ride-sharing company Didi Chuxing Technology yesterday.