Japan's stock index surpasses record high set 34 years ago

Tokyo, Feb 22: Japan's main stock index has hit an all-time closing high, surpassing the previous record set 34 years ago, a media report said.

The Nikkei 225 rose 2.19 per cent on Thursday to end the trading day at 39,098.68, BBC reported. The index topped the previous record closing high of 38,915.87 set on December 29, 1989, the last day of trading that decade.

Asian technology shares were boosted after US chip giant Nvidia revealed strong earnings, driven by demand for its artificial intelligence processors.

Global investors are returning to the benchmark index thanks to strong company earnings, even as the country's economy has fallen into a recession.

The weakness of the Japanese currency has also helped boost share prices of Japan's exporters as it makes their products cheaper in overseas markets, BBC reported.

The Nikkei 225 hit its previous record high after years of soaring stock and property prices. Less than three years after that peak, the benchmark index had lost almost 60 per cent of its value as the Japanese economy was engulfed in an economic crisis, BBC reported.

Since then, Japan has struggled with little or no economic growth and falling prices, known as deflation.

Deflation is bad for an economy as persistent price declines mean that consumers tend to hold off from buying big ticket items due to the expectation that they will be cheaper in the future.