Amazon and Apple ignite the tech market! The Nikkei index hits a new high, with a monthly increase reaching a 30-year record
On Friday, strong sales expectations from Amazon and Apple drove technology stocks higher, with Japan's Nikkei 225 index reaching a record high, marking the largest monthly gain in 30 years. The Nikkei 225 index closed up 2.1% at 52,411.34 points, with a cumulative gain of 16.6% in October. The Bank of Japan maintained interest rates, and the depreciation of the yen further boosted the performance of export stocks. Technology stocks became the core driving force behind the rise of the Nikkei index, with AI-related stocks performing exceptionally well, and the market is full of expectations for the new prime minister's fiscal stimulus policies
According to Zhitong Finance APP, on Friday, boosted by strong sales expectations from Amazon (AMZN.US) and Apple (AAPL.US), technology stocks surged, with Japan's Nikkei 225 index hitting a new all-time high and recording the largest single-month gain in thirty years. Meanwhile, after the Bank of Japan released cautious signals following its decision to maintain interest rates on Thursday, the yen fell to a historic low against the euro and dropped to its lowest level against the dollar since February, further boosting the performance of heavyweight export stocks.
At the close, the Nikkei 225 index rose by 2.1%, closing at an intraday high of 52,411.34 points, setting a new record for the highest closing. The index's cumulative gain in October reached 16.6%, marking the largest single-month increase since January 1994. The broader TOPIX index also peaked at 1.4% during the day, reaching a historical high of 3,348.06 points, and ultimately closed up 0.9% at 3,331.83 points, simultaneously setting a new historical closing high.
It is reported that Amazon announced on Thursday that its cloud business revenue growth rate reached a nearly three-year high, driving the company's quarterly sales guidance above market expectations. Meanwhile, Apple CEO Tim Cook's forecasts for iPhone sales during the holiday season and the company's overall revenue exceeded Wall Street analysts' expectations.
These strong performances made Japanese chip sector stocks one of the main drivers of Friday's gains: Socionext's stock price soared nearly 17%; Advantest rose 3.9%, becoming the largest contributor to the Nikkei index due to its high weight in the index.
Artificial intelligence (AI) data center-related stocks also performed well, with Hitachi's stock price soaring 7.2%.
In recent months, technology stocks have become the core driving force behind the continuous rise of the Nikkei index, as global stock markets have revived amid fervent expectations for AI. This month, the Japanese market has also been bolstered by expectations of proactive fiscal stimulus policies from the new Prime Minister, Sanna Takagi.
Mitsubishi UFJ Asset Management pointed out that Takagi's policy focus includes AI innovation, which means that Japanese technology stocks will benefit from both the global tech boom and domestic policy dual drivers.
Naoya Oshikubo, Chief Market Economist at Mitsubishi UFJ Asset Management, stated that the Nikkei index breaking through 52,000 points is "just a stop on the way up. There is still room for further increases, and it is expected to rise by about 10% before April next year." He also emphasized, "The current upward trend is not a bubble."
