The benchmark Nikkei stock average topped 30,000 for the first time in over 30 years in Tokyo trading on Monday, after Japanese gross domestic product data beat market expectations.
The 225-issue Nikkei average soared 564.08 points, or 1.91%, to close at 30,084.15, its highest finish since Aug. 2, 1990. On Friday, the index sagged 42.86 points.
The Topix index of all TSE first section issues finished up 20.06 points, or 1.04%, at 1,953.94. It gained 3.06 points the previous trading day.
The gains came after all three major U.S. stock market indicators, including the Dow Jones Industrial Average, notched record highs on Friday.
Market sentiment was brightened by better-than-expected domestic GDP growth for October-December, announced before the opening bell.
A sense of accomplishment after the Nikkei reached the psychological threshold made stocks top-heavy. But the index added gains in the afternoon, in step with rising U.S. stocks futures in off-hours trading, brokers said.
“The Nikkei went north of 30,000 rather swiftly,” Masayuki Otani, chief market analyst at Securities Japan Inc., said, as market watchers had expected the index to struggle for major incentives that would put it over the threshold.
“While the market may see stocks overpriced with the Nikkei around 30,000, it has yet to face a sense of overheating and may continue to a buy,” said Kazuo Kamitani, strategist at Nomura Securities Co.
“The fact that buying demand continued even after reaching the 30,000-mark means that many market players believe the Nikkei has more room to go up,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
On the TSE first section, gainers outnumbered decliners 1,339 to 773, while 81 issues stayed unchanged. Volume shrank to 1.275 billion shares from Friday’s 1.343 billion shares.
Olympus rocketed 12.22% after the optical equipment-maker on Friday released better-than-expected earnings forecasts for the fiscal year ending March.
Banks and insurance firms attracted buying thanks to a steady climb in U.S. long-term interest rates.
Other winners included fashion company Fast Retailing and industrial robot-maker Fanuc.
On the other hand, Rakuten plunged 6.49% after the cybermall operator on Friday logged a record net loss for the fiscal year ending December.
Nissan and Subaru also met with selling.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average soared 720 points to end at 30,100.
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