The Nikkei Stock Average closed above 20,000 Wednesday for the first time since 2000, the result of a rally this year driven not only by international exporters but also by lesser-known companies selling staples domestically.
In Japan, the Nikkei 225 leaped 224.81 points, or 1.1%, to 20,133.90, the first close above the 20,000 mark since April 14, 2000.
In Hong Kong, the Hang Seng index gained 83.36 points, or 0.3%, to 27,933.85,
Makers of chocolate, mayonnaise, potato chips and household appliances have helped lift the Tokyo market since the beginning of 2015. That is partly based on expectations for a recovery in consumer demand this year after big companies decided to raise wages the spring.
Many of these companies also illustrate the themes that have been pushing the Japan market higher since Prime Minister Shinzo Abe took office in December 2012: a tighter focus on profitability and shareholder returns, even when Japanese consumers aren’t helping much. Booming tourism to Japan by other Asians also is helping.
Many investors are cautious about whether the Nikkei is poised for further gains. Japanese economic growth remains weak and China’s economy has slowed, prompting Beijing’s central bank to take steps Sunday to make bank lending easier. Much of the buying in the Tokyo stock market is coming from the government pension fund and other public or quasi-public investors, rather than individuals.
Calbee Inc., a maker of potato chips and shrimp-flavored crackers popular in Japan, has seen its shares double in the past year, boosted by higher earnings and a company policy of raising dividends. The company is planning to pay a dividend of ¥26 (22 cents U.S.) per share in the year ended March 31, more than double the figure three years ago.
Shares of Meiji Holdings Co.., Japan’s top maker of chocolate and yogurt, have more than doubled, helped by cost-cutting that lifted profits and demand from tourists. The company is trying to strengthen its overseas operations, which now make up less than 10% of total sales.
Since Shinzo Abe took over as prime minister and appointed Haruhiko Kuroda to head the Bank of Japan, monetary easing has driven the yen sharply lower against the dollar. That has helped exporters like Toyota Motor Corp. post record profits. Toyota shares are up more than 50% in the past year.
Shares of Zojirushi Corp. zoomed in March and early April and stand nearly five times the year-ago level because of anticipation about higher sales of rice cookers to Chinese tourists.
In other markets
The Shanghai CSI 300 hiked 120.65 points, or 2.6%, to 4,739.81
In Singapore, the Straits Times Index dipped 12.37 points, or 0.4%, to 3,496.24
The Kospi index in Korea slid 0.90 points to 2,143.89
In Taiwan, the Taiex index rebounded 79.02 points, or 0.8%, to 9,613
In New Zealand, the NZX 50 fell 23.90 points, or 0.4%, to 5,793.61
In Australia, the S&P/ASX 200 demurred 34.85 points, or 0.6%, to 5,837.49
