Nikkei Records Highest Fiscal-Year Gain

Japan's Nikkei share average concluded higher on Friday (Mar 29), led by chip-related heavyweights, and achieved a record fiscal-year gain in terms of points amid significant foreign buying. The index reached successive record highs this month, surpassing levels last seen on Feb 22, 1989, during Japan's bubble economy.

The rally was driven by foreign buying supported by a weaker yen and expectations that the Bank of Japan would maintain loose monetary policy. In the fiscal year ending on Friday, the index surged by 12,328 points, marking its largest gain on an absolute basis. It rose by 44%, the most since the financial year ended March 2021.

On Friday, the Nikkei ended up 0.5% at 40,369.44, recovering some of the losses from the previous session.

"Investors remain cautious about possible intervention in the currency market, but overall they see the weak yen as a positive factor for domestic stocks," said Fumio Matsumoto, chief strategist at Okasan Securities.

The yen reached a 34-year low against the dollar this week, prompting local authorities to hold an emergency meeting, indicating Tokyo is moving closer to intervening in the market. Chip-related firms Tokyo Electron and Advantest rose by 0.79% and 1.85%, respectively.

The property sector surged by 1.96%, rising by 16% this month, the most among sectors. The sector was bolstered by a government survey released this week, showing that land prices in the country rose at the fastest pace in 33 years in 2023. Optimism that the Bank of Japan will not rapidly raise interest rates supports their stock prices, according to Matsumoto of Okasan Securities.

The broader Topix rose by 0.61% to 2,768.62 on Friday.