TOKYO: The Japanese market soared in the week to Friday, as investors cheered the continued slide of the yen and its boon for exporters.
Tokyo shares are likely to continue heading north on robust investor appetite this week, as overseas markets also pick up their pace.
In the week to May 10, Tokyo's benchmark Nikkei 225 Index surged 6.67%, or 913.50 points, to finish at 14,607.54, the best close in more than five years.
The Topix Index of all first-section shares rose 4.97%, or 57.32 points, to 1,210.60.
Players have bought up a wide range of shares, particularly exporters who directly benefit from a sharp fall of the yen, which broke below 101 to the dollar last Friday, its lowest point in more than four years.
The Tokyo market's strength was likely to remain intact this week, as investors were expected to continue to take cues from the forex market, said Hirokazu Fujiki, strategist with Okasan Securities.
“The current buying sentiment is expected to remain strong next week (this week). The dollar's gain to the 100 mark was symbolic and many players believe the yen's weak trend is likely to continue for now,” he said.
“Some showed concerns about the fast pace of the recent gain, but individual and foreign investors are still showing strong appetite. All in all, the Nikkei Index is expected to remain on course to 15,000 during the week.” The Tokyo bourse was enjoying a tailwind as other international markets also experience bullish waves on optimistic outlook for the US economy, in part helped by aggressive monetary easing by major central banks, including the Bank of Japan.
“Overseas markets are also picking up on the back of easing monetary policies in the US, Japanese and other major economies,” Fujiki said.
In Tokyo, some investors were holding out hopes that the Japanese government under Prime Minister Shinzo Abe might offer additional economic policies ahead of the upper house election scheduled for July. AFP
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