Japan’s Nikkei share average soared to all-time peaks and closed 2 per cent higher on Friday (Mar 1), as tech-related stocks tracked record-high closings among their US peers after comments from Federal Reserve officials provided cues on the interest rate trajectory.

The Nikkei ended at a new closing high of 39,910.82, moving past a record intraday peak of 39,426.29 set earlier this week. The index closed the week higher with a 2 per cent jump.

Nikkei rose as high as 39,990.23, just shy of reaching 40,000 for the first time, as it continues to climb to record peaks after last month breaching the lifetime high set during the December 1989 asset bubble.

The broader Topix finished 1.26 per cent higher at 2,709.42.

Traders’ sentiment was upbeat after the S&P 500 and Nasdaq closed at record highs overnight, supported by technology stocks linked to AI, while US inflation data and comments from Fed officials fuelled bets of an interest rate cut in June.

Japan’s chip-related shares, which have greatly contributed to the index’s 17 per cent surge this year, also jumped.

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Index heavyweight Tokyo Electron surged 4.1 per cent to add about 151 index points to the Nikkei’s near 745-point rise. Chip-testing equipment maker Advantest, which counts US artificial intelligence firm Nvidia among its customers, gave an additional 56 points, gaining 3.02 per cent.

Shares of AI-focused startup investor SoftBank Group were up 1.3 per cent.

Among the Tokyo Stock Exchange’s 33 industry sectors, electric machinery rose 2.05 per cent, making it the third-largest gainer, after miners, which were up 2.63 per cent, and the oil and coal product sector, up 2.07 per cent.

At the same time, the insurance sector advanced 1.94 per cent after a number of non-life insurance companies announced the previous day that they will sell cross-shareholdings over the next few years.

“That’s positive for the Japanese financial sector,” as it allows the companies to increase shareholder returns, said Kenji Abe, analyst, Daiwa Securities.

The news comes amid expectations that companies will continue to boost returns through such unwindings and other measures, spurred by a reform request from the Tokyo Stock Exchange. This has also been a key driver of the Nikkei’s recent rise. REUTERS