Nikkei at 33-year high on weak yen and US optimism in Japan

The Japanese stock market has reached its highest level since July 1990, following the US government’s decision to raise the debt ceiling. The Nikkei share average rose by 1.32% to reach 31,325.84, with optimism surrounding the debt ceiling deal and a weaker yen contributing to the increase. The rise was also boosted by strong performances from Japanese chip-related companies, which were buoyed by the AI euphoria that lifted their Wall Street peers. However, there is still some risk associated with the deal, which has drawn criticism from both hardline Republicans and progressive Democrats. Despite this, analysts expect the Nikkei to continue to advance steadily over the coming week.