Tokyo's stock indexes ended at fresh all-time highs on Thursday, with the Nikkei crossing 42,000 for the first time, boosted by buying of Apple Inc. suppliers and other technology issues, as well as optimism about corporate earnings.
The 225-issue Nikkei Stock Average ended up 392.03 points, or 0.94 percent, from Wednesday at 42,224.02, closing at a record high for the third day in a row. The broader Topix index finished 19.97 points, or 0.69 percent, higher at 2,929.17.
On the top-tier Prime Market, other gainers included metal product, mining and pharmaceutical issues.
The U.S. dollar kept its firm tone in the upper 161 yen range in Tokyo, as rising U.S. and Japanese stocks prompted investors to sell the yen, seen as a safe-haven asset, dealers said.
At 5 p.m., the dollar fetched 161.62-64 yen compared with 161.63-73 yen in New York and 161.49-51 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.0839-0840 and 175.19-23 yen against $1.0825-0835 and 175.09-19 yen in New York and $1.0816-0817 and 174.67-71 yen in Tokyo late Wednesday afternoon.
The yield on the benchmark 10-year Japanese government bond edged down 0.005 percentage point from Wednesday's close to 1.080 percent, tracking an overnight fall in U.S. long-term Treasury yields.
On the stock market, Apple suppliers surged following a report that it aims to increase iPhone shipments in the latter half of 2024 compared to the previous year. Heavyweight semiconductor-related stocks were buoyed by the Nasdaq's record-high finish overnight, fueled by hopes for an early interest rate cut in the United States.
The Nikkei and Topix indexes have advanced to record highs recently, with the Nikkei surging more than 2,600 points since the start of July.
Among factors boosting the market included eased uncertainty about the U.S. presidential election, with former President Donald Trump seen as leading incumbent Joe Biden, who performed poorly in their debate last month, brokers said.
Hopes for strong domestic earnings for the April-June period due to a weaker yen, which lifts exporters' overseas profits when repatriated, and the belief that Japanese stocks remain undervalued compared to U.S. shares have also supported Tokyo stocks, they said.
"Investors are increasingly expecting Japanese companies to report stronger-than-anticipated results, with some firms likely to revise their full-year earnings outlooks upward," said Kenji Abe, chief strategist at Daiwa Securities Co.
"The Nikkei is expected to rise to the upper 42,000 range, as more companies are expected to upgrade projections when they release interim earnings reports," Abe said.
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