Japanese shares hit an eight-year high today (February 18th), boosted by Wall Street's record close and a weaker yen. The benchmark Nikkei 225 closed 1.2 per cent up at 18,199.17 – its highest finish since July 2007. The Topix rose 1.41 per cent to 1,482.67.
Yesterday, the Dow Jones industrial average enjoyed gains as investors reassessed the Greek debt problem and hoped for a deal. The dollar rose to 119.09 yen.
The Bank of Japan's decision to keep its monetary policy unchanged was shrugged off by the markets.
“Foreign investors picked up stocks in the banking and brokerage sectors. Individual investors also rushed to buy such issues in the afternoon following their recent surges,” Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co, told the Japan Times."The Nikkei is unlikely to keep rising at the current pace, but is expected to consolidate its downside at 18,000," he added.
Meanwhile, Chinese markets were closed for the holidays and will reopen on February 24th. Hong Kong's Hang Seng index closed 0.2 per cent up at 24,832.08. Australia's benchmark S&P/ASX 200 rose one per cent to 5,915.7.
GAIN Capital UK Limited (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.