Nikkei extends highest level
City Index May 20, 2013 1:45 PM
<p>The Japanese government has raised its growth outlook for the first time in two months, while the index has also been boosted by positive data emerging from the US. </p>
The Nikkei share average has climbed to its highest level since December 2007 today (May 20th), following further weakening of the yen and optimism regarding the Japanese economy.
Having been as high as 15,381.74, the Nikkei .N225 closed at 15,360.81 – 1.5 per cent higher for the day.
Since the turn of the year, the index has gained 48 per cent, with more than eight per cent added since the US dollar broke through the 100 yen threshold on May 9th.
A monthly report from the government indicated the Japanese economy is showing signs of steady recovery, upgrading its forecast for growth.
While much of this has been a result of prime minister Shinzo Abe's aggressive monetary policies, positive data emerging from the US – the world's largest economy – has also helped to improve trader sentiment. On Friday, both the Dow Jones and S&P 500 closed at record highs.
This has helped to boost the Nikkei as the US is Japan's biggest market for exports and traders are predicting the market will move even higher.
Hiroyuki Fukunaga, chief executive of Investrust, told Reuters: "In the next few days, the Nikkei's levels at 15,600 and higher are in sight."
Learn about the Asian markets and CFD trading at City Index
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.