The Topix might matter more for Japan these days, considering the shift in terms of ETF focus. But the Nikkei is still a key benchmark to watch, as it has been a cornerstone among Asian indices since forever. And with tech shares continuing to rip higher in the US, that is continuing to drive the Nikkei higher as well.
The tech-heavy index is now searching for a firm break above 41,000 in a push to fresh record highs today. It is up another 1.5% on the day as buyers continue to maintain a more positive momentum in general.
There was a bit of a setback in late March to April, owing to fears surrounding the BOJ tightening policy further. But as the Japanese central bank continues to kick the can down the road, investors are brushing aside the concerns on rate hikes. Instead, they are choosing to focus more on the broader market mood as is evident in Wall Street.
This article was written by Justin Low at www.forexlive.com.
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