Japan’s Nikkei soars on weaker yen

<p>Sentiment was also boosted by the markets’ calm reaction to the Greek election result. </p>

Tokyo shares soared today (January 27th) as the yen weakened and markets shrugged off the results of the Greek election that saw anti-austerity party Syriza win.

The benchmark Nikkei 225 ended 1.7 per cent up at 17,768.3, its highest close since late December. The broader Topix and the JPX-Nikkei Index 400 also gained 1.7 per cent. The dollar stood against the yen at 118.20.

The European Central Bank's €60 billion (£45 billion) stimulus also improved trading sentiment. "Money will be freed up to flow into equities and some of that will come into Japanese shares," said Nomura equity strategist Masaki Motomura, quoted by CNBC.

"And, with a weaker yen expected to boost recurring operating profit at Japanese companies, the Nikkei is headed to the 18,000 level by March," he added. 

Shares in China fell after data showed that factory profits grew at their weakest rate in two years in 2014. The Shanghai Composite tumbled 0.9 per cent to 3,352.96, while Hong Kong's Hang Seng index closed 0.4 per cent down at 24,807.28. The benchmark Kospi index ended 0.9 per cent up at 1,952.4.

Up to date information on the Nikkei and other indexes can be found at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.