Nikkei hits 40,000 mark; what's behind the bull-run in Japanese markets?

The Nikkie benchmark index has been experiencing an unprecedented rally, as it achieved an all-time high for the first time in 34 years last month

Japan's key stock index, Nikkei 225 breached the 40,000-point milestone on Monday, driven by a surge in technology shares. The Nikkei share average closed with a 0.7 per cent gain, reaching 40,192.48. The broad-based Topix registered a marginal 0.1 per cent gain after surpassing the 2,700 mark and reaching a record high the previous Friday.

This surge was led by semiconductor-related stocks, including Tokyo Electron and Advantest, both experiencing a 3 per cent rise.

The upward movement also follows a notable rally in US stocks last Friday, highlighted by chipmaker Nvidia's market capitalisation exceeding $2 trillion. Investors, analysts said, are optimistic about