Nikkei soars past all-time closing high as chip stocks rise on Nvidia’s robust outlook

By Thomson Reuters Feb 21, 2024 | 7:57 PM

TOKYO (Reuters) – Japan’s Nikkei share average on Thursday surged past an all-time closing high scaled in December 1989, as chip-related stocks jumped after U.S. chipmaker Nvidia’s outlook beat market expectations.

The Nikkei rose to a high of 38,924.88, crossing the record close of 38,915,87 set on the final trading day of 1989. The index was within touching distance of the lifetime high of 38,957.44, an intraday level, which was also reached on that same day nearly 35 years ago.

The index was up 1.54% to 38,856.90 by 0122 GMT.

Nvidia shares surged 6% overnight after it forecast fiscal first-quarter revenue above estimates on robust demand for its chips that dominate the market for artificial intelligence (AI).

Chip-making equipment maker Tokyo Electron jumped 3.79% to give the biggest boost to the Nikkei. Chip-testing equipment maker Advantest gained 4.88%, while tech-start up investor SoftBank Group rose 3.99%.

(Reporting by Junko Fujita; Editing by Shri Navaratnam)