Nikkei 225 Hits All-Time High as Tech Stocks Surge 8.7%

The Nikkei 225 index in Japan reached an all-time high during intraday trading on Thursday, driven by a surge in technology stocks. The index opened with a 0.3% gain, reaching 44,938.40 points, and briefly touched 45,055.99 points, surpassing the previous high set earlier in the week. This upward momentum was largely attributed to the strong performance of technology stocks, which led the market higher.

Resonac Holdings and Screen Holdings were among the top performers, with Resonac Holdings surging by 8.7% and Screen Holdings rising by 4.8%. However, the recent strength of the Japanese yen limited the gains for exporters, as a stronger currency makes their products more expensive in international markets. Tokyo Electric Power and Tokyo Gas were among the notable decliners, with Tokyo Electric Power falling by 4.4% and Tokyo Gas dropping by 4.1%.

The technology sector's performance was particularly noteworthy, as it received a boost from favorable market conditions. The sector has benefited from the implementation of new tariff policies and the positive sentiment surrounding the technology industry. As the market continues to evolve, the technology sector is likely to remain a focal point for investors, given its potential for growth and innovation.

Despite the overall positive sentiment, the strength of the Japanese yen has posed a challenge for exporters. The yen's appreciation has made it more difficult for Japanese companies to compete in global markets, as their products become more expensive for foreign buyers. This dynamic has tempered the gains for exporters, even as the broader market continues to climb.

The market's focus has also been on the upcoming decisions by the Bank of Japan and the Federal Reserve. These monetary policy decisions will have significant implications for global markets, including the Japanese stock market. Investors are closely monitoring these developments, as they could influence the trajectory of the Nikkei 225 index and other major indices.