Finance

Nikkei breaks all-time closing high in intraday trade as Nvidia drives chips rally

TOKYO (Reuters) -Japan’s Nikkei share average on Thursday surged past an all-time closing high scaled in December 1989 during intraday trade, as chip-related stocks jumped after U.S. chipmaker Nvidia’s outlook beat market expectations.

In the morning session, the Nikkei rose to a high of 38,924.88, crossing the record close of 38,915,87 set on the final trading day of 1989. The index was within touching distance of the lifetime high of 38,957.44, an intraday level, which was also reached on that same day nearly 35 years ago.

The index was up 1.7% to 38,913.84 at the midday break.

Nvidia shares surged 6% overnight after it forecast fiscal first-quarter revenue above estimates on robust demand for its chips that dominate the market for artificial intelligence (AI).

“The market was strong. Investors were waiting for the outlook of Nvidia,” said Jun Morita, general manager of the research department at Chibagin Asset Management.

Chip-making equipment maker Tokyo Electron jumped 4.52% to give the biggest boost to the Nikkei. Chip-testing equipment maker Advantest gained 5.07%, while tech-start up investor SoftBank Group rose 4.96%.

(Reporting by Junko FujitaEditing by Shri Navaratnam)

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