Japan's Nikkei index reaches new high of 39,099 after 34 years

Mumbai: Global funds, which have invested heavily in China in the last few years, are now turning to Japan again as the government is forced to take drastic measures due to the economic crisis in China. Japan's Tokyo stock market's Nikkei 225 index rose today to its highest level since 1989 as shares were bought by Japanese companies on strong results and improvements in corporate governance.

Despite deflation and recession in Japan, the Tokyo stock market's Nikkei 225 index rose 2.2 percent or 836.52 points to close at a new high since 1989 at 39,098.68 as global funds began investing heavily in Japan.

Shares of computer chip maker Nvidia Corp rose sharply after yesterday's results. Shares of Tokyo Electron rose 6 percent, Advanset Corp rose 7.5 percent and SoftBank Group Corp rose 5.1 percent.

It is noteworthy that the prices of shares in Tokyo Stock Exchange have increased by 15 percent in the last three months and by 44 percent in the last one year.

On the other hand, amidst economic uncertainty and crisis in China, the Shanghai stock market has fallen by 11 percent in a year and the Hang Seng of Hong Kong stock market has fallen by 22 percent.

The point to be noted here is that after the Japanese stock market reached its all-time high in 1989, the financial bubble burst and banks were forced to deal with 100 trillion yen worth of bad loans. Now after 34 years, there has been a record rise in the Japanese stock market.

Global stock markets are on the rise

*** Open market futures-evening

Shares of multinational companies rose