Japan’s Nikkei share average probed its highest levels in nearly two years on Tuesday, powered by record highs on Wall Street and a weaker yen. The Nikkei was up 1.1 percent at the end of morning trade at 20,287.67, after rising as high as 20,318.11, its highest level since August 2015. Naoki Kamiyama, chief strategist at Nikko Asset Management, said the bullish tone in the Japan equity market stemmed from the stronger dollar and economic recovery in Japan, the United States and Europe. “I believe the economic trend will be unchanged,” he added.
The next upside target for the Nikkei lies at 20,500, said Yutaka Miura, a senior technical analyst at Mizuho Securities. On Wall Street overnight, the S&P 500 and the Dow Jones Industrial Average hit record highs, with growth sectors such as technology in favour again, as the upbeat Fed comments cheered investors. The dollar was up 0.1 percent at 111.67 yen.
Sharp Corp jumped 4.1 after Jiji reported that its president said it will apply for relisting on the first section of Tokyo bourse later this month. Iwaki & Co soared 12.1 percent after scaling more than 11-year highs earlier, after the pharmaceutical company on Monday hiked its outlook. Askul Corp shares rose 9.2 percent, after the office supply vender on Monday upwardly revised its profit outlook for the fiscal year ending on May 20 and said it will pay an annual dividend.
Shares of Takata Corp were untraded amid a glut of sell orders. On Monday, the Tokyo Stock Exchange lifted its suspension of trading in shares of the troubled maker of car safety equipment. Trade at the end of the day on Monday left the stock at 404 yen, compared with 484 yen where it last traded on Thursday. The broader Topix and the JPX-Nikkei Index 400 were both up 1 percent at 1,621.87 and 14,427.52 respectively.