Japan’s Nikkei hits 34-year high

Japan’s Nikkei share index has hit a new 34-year high today, and is closing in on its all-time peak.

The Nikkei rose over the 37,000-point line for the first time in 34 years today, putting the all-time peak of 38,916 points set in December 1989 in sight.

The Nikkei has gained 10% so far this year, helped by expectations that the Bank of Japan will maintain its ultra-accommodative monetary policies.

Richard Hunter, head of markets at interactive investor, explains: “In Japan, the Nikkei again tested highs not seen since 1990, encouraged by comments from the Bank of Japan suggesting that the current easy monetary policy is likely to largely remain in place.

“In addition, the region has seen an influx of overseas investors who have chosen to flee Chinese markets in light of the country’s ongoing economic woes.”