As Wednesday’s trading session drew to a close, the Nikkei 225 added 0.3%, or 57.7 points, to finish the day at 20,881.2. That is its highest finish since 1996 and comes after fresh record high from Wall Street overnight. Meanwhile, the broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 1.67 points, or 0.10%, higher at 1,696.81.
Gainers were led by insurance, nonferrous metal and land transportation issues.
Another major factor for the success of the Tokyo stock market of late is due to political activity in the US.President Trump has vowed to cut corporate tax rates which has spurred US markets, which in turn have had a positive effect on Japan’s indexes. There is also an increased likelihood of an interest rate rise from the US Federal Reserve.
Furthermore, Japan could see more gains with predictions of healthy corporate profits during results season later in September. Indeed, the world’s third largest economy has profited from rising exports whilst it has also benefited from investment to the upcoming 2020 Olympics in Tokyo.
A day before Wednesday’s figures, the international Monetary Fund raised its global economic outlook for Japan, raising its forecast to 1.5% GDP growth for the year and 0.7% for 2017. This is up from previous estimates of 1.3% and 0.6% respectively.
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