Nikkei Near 18 Year High Thanks to Soft JPY

Japan’s benchmark stock index neared a four-week high Monday, bringing it within touching distance of an 18-year high, thanks to a weakened yen which has come back into focus as events in China and Greece die down.

After an extended weekend, the Nikkei 225 climbed 0.9 percent to trade at 20,841.97 Tuesday, just shy of 20,933 reached last month – its highest finish since December 1996.

Investors will be watching closely as earnings season kicks off in Asia later this week, with a “lack of investor interest” in the dollar against the yen likely to prove positive for further weakening in the Japanese currency, according to UBS.

“With China and Greece dominating the recent news flow, Japan remains off the radar of many investors,” Daniel Waldman, a currency strategist at UBS, said on Tuesday.

“However, with inflation still low, the Bank of Japan’s reflation efforts are likely to remain significant in the second half, further benefiting long dollar/yen, where we remain bullish and think risk-reward is strong.”

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.