The Nikkei stock index surpassed the 40,000 threshold for the first time Monday morning on robust technology issues, reaching the milestone just over a week after hitting an all-time high for the first time in 34 years.
The 225-issue Nikkei Stock Average topped the 40,000 line soon after the market opening and hit a fresh intraday record of 40,314.64. It ended the morning session up 316.01 points, or 0.79 percent, at 40,226.83.
The broader Topix index was up 4.37 points, or 0.16 percent, at 2,713.79.
The benchmark Nikkei has gained over 1,000 points, topping record highs marked in 1989, since Feb. 22, attracting domestic and foreign investment amid expectations for favorable corporate earnings boosted by a weak yen.
On the top-tier Prime Market, gainers were led by precision instrument, electric appliance and mining shares, with technology issues such as Tokyo Electron and Advantest boosting the market on anticipation of robust demand for artificial intelligence.
The market was also supported by Wall Street advances late last week, with the technology-heavy Nasdaq index ending at a record high.
"The 40,000 level almost matches the performance of Japanese companies, if we assume a 5 to 8 percent increase in corporate profit growth in fiscal 2024" starting April, said Shingo Ide, chief equity strategist at the NLI Research Institute.
But considering the speed of the Nikkei's recent rise, it is unclear whether the index will be able to hold on to the 40,000 threshold, he added.
On the currency market, the U.S. dollar moved little mostly in the lower 150 yen range in Tokyo amid a lack of new trading incentives.
At noon, the dollar fetched 150.16-19 yen compared with 150.08-18 yen in New York and 150.49-50 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.0844-0848 and 162.83-93 yen against $1.0835-0845 and 162.64-74 yen in New York and $1.0811-0813 and 162.70-74 yen in Tokyo late Friday afternoon.
