TOKYO — The Nikkei 225 closed at 39,098 points, breaking its December 1989 peak of 38,915 for the first time in 34 years. This milestone reflects a shift in market sentiment driven by corporate governance reforms and yen weakness that makes Japanese exporters competitive again.
Tokyo Stock Exchange governance reforms have improved shareholder returns and attracted foreign capital. The persistently weak yen has boosted profits for major Japanese exporters, while the return of modest inflation after years of deflation signals a healthier domestic economy.
This Japanese resurgence offers a positive signal for U.S. multinationals with global operations. Apple, which generates substantial revenue from Asian markets, rose 1.2 percent to $287.51. Microsoft gained 0.6 percent to $413.96, benefiting from broad economic stability in its cloud services and enterprise software markets.
U.S. technology stocks continue showing strong performance driven by innovation and sector catalysts. Nvidia gained 5.7 percent to $207.83, while the Nasdaq rose 2.0 percent to 25,839, indicating sustained momentum in U.S. tech leadership as investors balance international diversification with established domestic leaders.
Investors should monitor upcoming earnings reports from U.S. companies with substantial international operations for confirmation of global economic strength. The Bank of Japan's next monetary policy meeting on July 30 will offer insight into the sustainability of Japan's economic conditions and potential monetary policy adjustments.
