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Japan's Nikkei climbs over 2% to close above 39,000 — surpasses all-time high hit in 1989

Lee Ying Shan

This is CNBC's live blog covering Asia-Pacific markets.

Skyline of Tokyo, Japan.
Jackyenjoyphotography | Moment | Getty Images

Japan's Nikkei hit a record high on Thursday with investors shrugging off dismal business activity data from the country, while other Asia-Pacific markets traded in the green.

The Nikkei 225 hit as high as 39,156.97, surpassing the previous record high of 38,915.87 reached in 1989.

The index closed 2.19% higher to end at 39,098.68 as investors shrugged off Japan's Jibun Bank flash purchasing managers' index reading for February that showed business activity contracted yet again.

In Australia, the S&P/ASX 200 closed marginally lower at 7,611.2. The nation's Judo Bank composite purchasing managers' index for February showed a return to growth, at 51.8. The monthly index is a leading indicator for business activity in Australia's manufacturing and service sector.

South Korea's Kospi rose 0.41% to close at 2,664.27, as Goldman Sachs said the country's central bank could be the first to cut rates on the day it chose to hold them steady.

Hong Kong's Hang Seng index traded 1.04% higher, while China's CSI 300 added 0.86% to close at 3,486.67.


Overnight in the U.S., the Dow Jones Industrial Average added 48.44 points, or 0.13%, settling at 38,612.24. The S&P 500 gained 0.13% to end at 4,981.80. The tech-heavy Nasdaq Composite lost 0.32% to close at 15,580.87.

Minutes released Wednesday from the Federal Reserve's January meeting — which came on the back of hotter-than-expected economic data the previous week — indicated that central bankers are in no hurry to cut interest rates. 

— CNBC's Pia Singh and Hakyung Kim contributed to this report.

Japan’s Nikkei crosses 39,000 as robust earnings, investor-friendly measures drive risk-on sentiment

Passersby look at electric screens, displying Japan's Nikkei share average which surged to a record high, outside of a brokerage in Tokyo, Japan February 22, 2024. 
Issei Kato | Reuters

Japan's Nikkei 225 hit a record high Thursday, powered by banking, electronics and consumer stocks as robust earnings and investor-friendly measures fuel a blistering rally in Japanese equities this year.

The Nikkei 225 jumped nearly 2% to hit 39,029, surpassing the previous record high of 38,915.87 reached in 1989.

Both the Nikkei and the broader Topix have been standout outperformers in Asia Pacific, up more than 10% so far this year after surging more than 25% in 2023 — their respective best annual gains in at least a decade.

—Clement Tan

Nikkei adds nearly 2%, powered by banking, electronics and consumer stocks

Japan's Nikkei 225 led gains in Asia, briefly surpassing its1989 all-time high, powered by a mix of banking, electronics and consumer stocks.

The index climbed 1.92% on Thursday, with Aozora Bank being the biggest gainer, up 8.21%.

Electronics company Furukawa Electric and petrochemical firm Resonac Holdings rose 4.7% and 3.97% respectively.

Other index heavyweights were also in the green. Tokyo Electron advanced 5.74%, while Softbank gained 5.33%. Fast Retailing rose 2.41%.

—Lee Ying Shan

Bank of Korea could be the first in Asia to cut rates, Goldman Sachs says

Bank of Korea will be one of the first Asian central banks to cut rates, says Goldman Sachs
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Bank of Korea will be one of the first to cut rates in Asia, says Goldman Sachs
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The Bank of Korea's decision to stay pat on interest rates was "no surprise at all," but it could still be one of the first in the region to cut them, said Goldman Sachs senior Asia economist Goohoon Kwon.

"We still think that BOK will be one of the first central banks in Asia which will cut the rate," he said, basing his projection on an ongoing disinflation trend and subdued private consumption.

A strong rebound in exports, given the advent of AI and strength in the semiconductor industry will allow the BOK to be less constrained by U.S. monetary policy and inflation, which seems to be currently affecting the interest rates globally, he said.

—Lee Ying Shan

Japan's au Jibun Bank flash PMI shows further contraction in factory activity

The au Jibun Bank's flash Japan manufacturing purchasing managers' index fell to to 47.2 in February, compared with January's 48.0 reading, indicating continued contraction in private sector business activity.

The reading signals a ninth consecutive deterioration in business activity, according to Jibun Bank.

"A steep reduction in new orders led to production shrinking at the fastest rate for a year," the bank said in a statement.

– Lee Ying Shan

Australia's February composite PMI shows a return to growth

Australia's Judo Bank composite purchasing managers' index for February showed a return to growth at 51.8, up from 49.0 in January. The 50 mark separates growth from contraction.

The reading indicated that private sector activity returned to growth for the first time in five months, and at the fastest rate since last April, according to Judo Bank.

"Australia's private sector activity improved midway into the first quarter, though growth was driven solely by the service sector," Judo Bank said in a news release, adding that higher new business supported the expansions in output and employment

The monthly index is a leading indicator for business activity for Australia's manufacturing and services sector.

—Lee Ying Shan

CNBC Pro: JPMorgan reveals its favorite European stocks — giving one over 93% upside

JP Morgan has uncovered several top European stocks offering substantial upside potential - as well as some 'unattractive' names right now.

According to the investment bank, U.S. stocks are "ahead of international," growth stocks have been "outperforming" value names and large-cap stocks are "again beating" small ones.

CNBC Pro subscribers can read more here on the bank's top and least preferred stocks.

— Amala Balakrishner

CNBC Pro: Where do Treasury yields go from here? Morgan Stanley's Jim Caron weighs in

Treasury yields shot up last year, and investors flocked to allocating to cash which have yielded around 5% or even more.

Those yields have since dropped, and Wall Street are widely expecting them to go fall even further, leading investors to exit cash and get into other income-generating assets. But recent stronger-than-expected economic data on consumer and producer prices has raised the possibility that the U.S. Federal Reserve will cut rates later rather than sooner.

CNBC Pro subscribers can read more here about where these yields may be headed, according to Morgan Stanley Investment Management's Jim Caron. He also outlined three scenarios for the 10-year yield, explaining how each could affect stocks.

— Weizhen Tan

Oil prices rise as Fed officials indicate interest rates have peaked

An oil pump jack in Midland, Texas, on March 2, 2023.
Bloomberg | Bloomberg | Getty Images

Crude oil futures rose Wednesday as Federal Reserve officials indicated that interest rates have likely reached their peak. 

The West Texas Intermediate contract for April gained 87 cents, or 1.13%, to settle at $77.91 a barrel. April Brent futures added 69 cents, or 0.84%, to settle at $83.03 a barrel.

Fed officials agreed during the central bank's January meeting that interest rates have likely peaked, according to minutes from the proceeding released Wednesday. The officials also generally agreed that rates should not be cut until they had more confidence inflation was under control. 

Tensions continued to simmer in the Middle East this week after Israel launched airstrikes against Hezbollah in Lebanon, Houthi militants struck another cargo vessel Monday and as Iran now blames Israel for explosions that hit a natural gas pipeline in the Islamic Republic on Feb. 14.

— Spencer Kimball