Nikkei Index Soars Over 70,000 for First Time

Improved Investor Sentiment

On June 18, the Tokyo Stock Exchange’s Nikkei index (Nikkei 225) rose by 1,151.24 points over the previous day to close at 71,053.49 as part of a major ongoing increase, exceeding 70,000 for the first time.

Investor sentiment improved following the signing of a memorandum of understanding ending hostilities between the United States and Iran. Strong performance from AI and other high-tech stocks is driving the gains.

During Japan’s bubble-economy era, the index peaked at 38,915 on December 29, 1989. With the start of the new year, stock prices fell and the Japanese economy entered a long period of stagnation that came to be known as “the lost decades.” In 1997 and 1998, financial institutions failed in succession, and deflation worsened in the years from 2000 onward. A global financial crisis triggered by the collapse of Lehman Brothers then caused the Nikkei index to fall to 7,054.98 in March 2009, its low point in the post-bubble period.

Abe Shinzō’s return as prime minister at the end of 2012 was a turning point. Massive monetary easing from the Bank of Japan was effective in leading stock prices to rise. In 2020, the global COVID-19 pandemic caused governments to implement large-scale stimulus measures, and the supply of large sums of funds to markets through monetary easing and fiscal outlays provided momentum to drive the Nikkei index above its 1989 high on February 23, 2024.

Stock prices have continued to soar at an astonishing rate. The index has risen past a series of milestones: 40,000 in March 2024, 50,000 in October 2025, and 60,000 in April 2026. The climb to the current high of more than 70,000 took less than two months.

Data Sources

• Data on the Nikkei index (Japanese) from Nikkei
• Analysis on the Nikkei index rise above 70,000 (Japanese) from Daiichi Life Group

(Translated from Japanese. Banner photo: An electronic stock board showing the Nikkei index closing price above the 70,000 mark for the first time. © Reuters.)