Nikkei closes at 33-year high; firm Wall Street lifts appetite

JAPAN’S Nikkei share average closed at its highest in 33 years on Monday (Jun 5) as gains on Wall Street lifted risk appetite, while investors kept betting on domestic equities on expectations the Bank of Japan would retain its ultra-loose policy.

The Nikkei index jumped 2.2 per cent to end at 32,217.43, its highest close since July 1990 and posted its biggest daily gain since Jan 18.

The broader Topix advanced 1.7 per cent to 2,219.79.

“The market was supported by the gains in the US market on Friday. That helped keep the money flowing into risk assets in Japan,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

The Japanese equities are in more favourable position than their US peers as the BOJ is expected to maintain ultra low rates. Hence, when US shares rise, there is no reason for not buying Japanese stocks, Kamada added.

The Bank of Japan will hold a two-day policy meeting, starting June 15. REUTERS