Nikkei edges further towards five year high

A new five-year high could be reached by the Nikkei, as the index has seen another day of gains to take it closer to the major landmark.

Recent measures announced by the Bank of Japan (BoJ) to boost the country's economy have had an overwhelmingly positive impact on the index and it gained 0.7 per cent to 13,289.30 by the midday break today (April 10th).

Yuya Tsuchida, a strategist of Toyo Securities, told Reuters that the BoJ's bold monetary easing steps announced last week was a "bazooka" and the markets are still "basking in the afterglow" of that move.

"The market has been gaining sharply, especially reflationary stocks. The rises have been very, very steep," said Yasuo Sakuma, portfolio manager of Bayview Asset Management.

Yesterday, the Nikkei had advanced 0.5 per cent to 13,260.04 at lunch to edge further towards the five-year high. Once the landmark has been reached on the markets, it will indicate the growing strength of the Asian country's economy in the wake of the recession.

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