Nikkei hits new five-year high

<p>A new five-year high has been hit by the Nikkei.</p>

The Nikkei has hit a new five-year high after the index broke through the 14,000 mark for the first time since June 2008 in today's (May 7th) trading.

It rose by almost three per cent to 14,083.26 on the first day of trading after the long holiday weekend in Japan.

Speaking to BBC News, Hiroichi Nishi from SMBC Nikko Securities explained a weaker yen has persuaded investors to return to the market.

"Stocks must account for a few sessions of most positive activity in overseas markets," he said.

Mr Nishi also highlighted the fact that the European Central Bank's rate cut has been positive news for the index, while there has been encouraging news about the recovery of the US economy in the last couple of weeks.

The Nikkei has been growing for much of the year, but at the end of April and the start of May the index went through a downturn of four days of losses in a row.

Learn about the Asian markets and CFD trading 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.