Nikkei reaches five-and-a-half year high

<p>The Nikkei is 0.7 per cent higher this morning.</p>

The Nikkei share index has gained 0.7 per cent this morning (May 17th), taking it to its highest level since December 2007.

It has been boosted by investors taking advantage of dips in volatile stocks such as real estates, in an effort to book a quick profit as the yen weakness begins to boost inflation.

Prime minister Shinzo Abe is expected to speak today and announce further economic actions to boost Japanese agriculture, so related stocks were also higher today.

The Nikkei benchmark index closed at 15,183.12 points and has gained 3.6 per cent over the course of this week.

In early trading, it had fallen into negative territory, but the actions of those snapping up real estate stocks – which were hit earlier this week when long-term debt yields increased – sent the market higher.

Since the US dollar broke through the 100 yen barrier last Thursday, the index has advanced by 6.7 per cent.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

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.

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