Japan stocks surged on Thursday, with the Nikkei 225 reaching its highest level in five years, closing 1.88% higher in Tokyo. Gains in the Precision Instruments, Transportation Equipment, and Services sectors played a key role in propelling shares higher.
At the close, the Nikkei 225 stood at 35,267.21, marking a remarkable new 5-year high. The positive momentum was driven by notable performances from companies such as Itochu Corp., which rose by 4.50%, KDDI Corp., gaining 4.21%, and Hitachi Ltd, up by 4.20%.
Conversely, Yamato Holdings Co., Ltd. saw a decline of 3.85%, Rakuten Inc fell by 2.44%, and SKY Perfect JSAT Holdings Inc. was down 1.65%.
The overall market sentiment was favorable, with rising stocks outnumbering declining ones on the Tokyo Stock Exchange. The Nikkei Volatility, measuring the implied volatility of Nikkei 225 options, saw a 4.01% increase to 19.20.
In commodities trading, crude oil for February delivery rose by 0.76% to $71.91 a barrel, while Brent oil for March delivery increased by 0.79% to $77.41 a barrel. The February Gold Futures contract also saw a rise of 0.54% to $2,038.70 per troy ounce.
Currency-wise, USD/JPY was down 0.20% to 145.43, while EUR/JPY fell by 0.13% to 159.74. The US Dollar Index Futures showed a decrease of 0.12%, settling at 101.96. Overall, the positive performance in the Japanese stock market reflected a robust trading day with notable gains and optimism among investors.