Japan’s stock index crosses record high set 34 years ago

Tokyo: Japan’s main stock index has hit an all-time high, surpassing the previous record set 34 years ago, a media report said. The Nikkei 225 closed 2.19 percent higher at 39,098.68 on Thursday, the BBC reported. The index reached its previous record closing high of 38,915.87 on December 29, 1989, the last day of trading that decade. Asian technology shares got a boost after US chip giant Nvidia disclosed strong earnings driven by demand for its artificial intelligence processors. The company’s strong earnings are leading global investors to return to the benchmark index, even as the country’s economy is in recession. According to the BBC report, the weakness of the Japanese currency has also helped boost the share prices of Japanese exporters as it makes their products cheaper in foreign markets. Also Read – One killed, eight injured in highway shooting in West Bank The Nikkei 225 hit its previous record high after years of rising stock and property prices. Less than three years after that peak, the benchmark index lost nearly 60 percent of its value as the Japanese economy plunged into economic crisis, the BBC reported. Since then, Japan has experienced little or no economic growth. And struggling with falling prices, known as deflation. Deflation is bad for an economy because a sustained fall in prices means consumers avoid purchasing large goods due to the expectation that they will be cheaper in the future.