(Bloomberg) -- Japan’s blue-chip equity gauge is at a three-year high relative to its broader counterpart as major exporters such as technology firms rally on strong earnings and a weak yen.
The so-called NT ratio, which compares the Nikkei 225 Stock Average with the Topix, reached its highest since 2021. The Nikkei 225 is about 2.3% away from surpassing its record closing level of 38,915.87 hit in 1989.
Masahiro Ichikawa, the chief market strategist at Sumitomo Mitsui DS Asset Management Co., said the recent outperformance of the Nikkei 225 can be attributed to the heavy weights of companies such as SoftBank Group Corp., Fast Retailing Co. and semiconductor-related firms.
SoftBank Group has surged on Arm Holdings Plc’s explosive AI rally, while chipmaking gear producer Tokyo Electron Ltd. has hit a record high after hiking full-year guidance on strong sales to China.
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