Nikkei grows towards five year high

The Nikkei is expected to reach a new five-year high in the coming days after strong gains for the index today (April 9th).

A strong start to the year for the Nikkei was recently followed by a small wobble, but the index now seems to be back on the right track and it advanced 0.5 per cent to 13,260.04 at lunch.

"It's still a quantitative easing market," a senior equity trader at a foreign brokerage in Tokyo told Reuters, adding: "There is some profit taking after some of the big moves yesterday … Small real estate stocks are still getting up there."

The growth of the Nikkei can be explained through recent measures announced by the Bank of Japan (BoJ) in a bid to stimulate the economy of the Asian nation.

At the start of last week there was two consecutive days of losses for the Nikkei, but the BoJ's actions led to a rebound for the index on Wednesday.

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