Strong gain for Nikkei

The Nikkei has put some of the woes of 2014 behind it by recording one of its strongest daily performances in weeks today (May 13th).

It rose by 1.95 per cent to erase the 0.35 per cent loss it started the new week with yesterday, with the index higher than its 25-day moving average for the first time in six weeks.

"The Japanese market's gain should be temporary as it's merely benefiting from strong US shares," Masashi Oda, chief investment officer at equity investment department of Sumitomo Mitsui Trust Bank, told Reuters.

Record highs have been hit by both the Dow and S&P 500, as well as the Sensex in India, in the last two days, which has in turn provided a timely boost to the Nikkei.

Last week had been another bad one for the Nikkei, which fell by 1.8 per cent to pile up yet more losses in what has been a very difficult first few months of the new year.

This is in sharp contrast to the Nikkei's 2013, during which it easily outperformed the Dow and the S&P, as well as the FTSE 100 in London.

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