Nikkei exceeds 40,000 points for 1st time powered by tech rally

Nikkei hits 40K: Japan's Nikkei index has surpassed the 40,000-point mark for the first time, driven primarily by a surge in technology stocks. As of the latest update, the Nikkei share average stands at 40,192.48, marking a 0.7 per cent increase.

This reflects the ongoing bullish sentiment in Japanese equities, which have been steadily climbing since last month, surpassing the previous all-time high set during the bubble economy era over three decades ago. This upward trajectory has been fuelled by reforms in corporate governance and attractive valuations.

The surge in technology shares has been a key driver behind the Nikkei's ascent, with Japanese tech companies benefiting from the continued rally in artificial intelligence-related stocks in the United States. This trend was further bolstered by the S&P 500 and Nasdaq hitting fresh record highs on Friday.

While the Nikkei soared, the broader Topix index showed marginal movement, edging down by 0.02 per cent to 2,709.07.

(With Reuters Inputs)