Nikkei closes above 20,000 for first time in 15 years
23 Apr 2015
Though experts have yet to make up their minds about the efficacy of "Abenomics," the economic policies of prime minister Shinzo Abe, Japanese investors seem to have given it a thumbs up, at least for the time being.
The 225-issue Nikkei Stock Average ended past 20,000 Wednesday for the first time in 15 years, closing 224.81 points, which came in 1.13 per cent, higher than a day earlier. The last time it closed at that level was in April 2000.
The Tokyo Stock Exchange's broader Topix index of all First Section issues was up 12.91 points, or 0.80 per cent, higher at 1,621.79.
According to Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities, who spoke to Kyodo News, the strong result supported the "firmly held belief among investors that the Japanese economy was on the mend and companies would perform strongly."
Earlier Wednesday, Japan's finance ministry announced the country's first monthly trade surplus in nearly three years.
According to Jiji Press, investors were also anticipating robust earnings this month, when the reporting period for corporate financial statements for the fiscal year ending in March gathered pace.
Long-struggling Japanese consumer electronics maker Sony Corp on Wednesday raised its earnings estimates for the second time in three months, citing higher-than-expected sales, according to the Asahi Shimbum newspaper.
However, according to analysts, the stronger-than-expected surplus was not likely to persist.
Japan relied heavily on imports for virtually all of its oil, gas and coal. Oil prices had already started recovering from the trough of less than $50 they hit earlier this year and had yet to be reflected in imports to the country.
According to Capital Economics Ltd's, Marcel Thieliant, what was more, the yen was expected to weaken further in coming months, which should lift the cost of imports by more than the yen-value of exports.
The Japanese Ministry of Finance yesterday said that preliminary data showed a 14.5 percent drop in imports last month from a year earlier, to ?6.7 trillion ($56 billion). Exports were up 8.5 per cent from a year earlier to ?6.9 trillion, leaving a surplus of ?229.3 billion.
On the basis of preliminary data for October to last month, Japan logged a trade deficit of ?9.1 trillion in the fiscal year from April last year to last month, it said.
Exports were up 5.4 per cent from the year before, while imports were down 1 per cent. Imports of oil, gas, coal and other fuels dropped 37 per cent last month from a year earlier, to ?1.77 trillion.
