Japan’s Nikkei 225 broke 30,000 points for the first time since 1990 on Monday as the country’s growing economic momentum on improving global demand helped push shares up across Asia Pacific.
The core index jumped 1.2% early in the session after data showed Japan’s economy grew 3% in the fourth quarter from the previous quarter, significantly more than analysts had expected . The Topix, another Japanese stock index, added 0.7%.
The “recovery should get another chance in the deployment arm of [Covid-19] vaccines, ”said Marcel Thieliant, senior economist in Japan at the research firm Capital Economics.
Monday Japanese equity rally was in part a response to strong economic data, said Takeo Kamai, head of execution services at CLSA, adding that the positivity was also linked to a wider global enthusiasm for stocks – particularly in the United States, where markets hit record highs this year.
Investors “probably still have a bias for further upside [for Japanese stocks] in the short term, ”he said. “For Japan, the story is not some sort of rally led by one country, but rather by the euphoria of global equities.”
Stock indices elsewhere in Asia-Pacific rose on Monday. South Korea’s Kospi index rose 1.6% and Australia’s S & P / ASX 200 rose 0.9%.
Stock markets in mainland China and Hong Kong were closed for the Lunar New Year holiday, but the overseas-traded renminbi edged up 0.1 percent to 6.411 RMB per dollar, its highest level since June 2018. The Chinese currency has been boosted by the strong economic recovery of the country after the coronavirus pandemic.
Oil prices soared as Texas grid operator warned possible power outages due to joint conditions that undermine the electricity supply. U.S. marker West Texas Intermediate rose 2.3 percent to $ 60.84 a barrel, while the international benchmark, Brent, rose 2 percent to $ 63.66 a barrel.
U.S. markets are closed for Presidents Day on Monday, while futures on the London FTSE 100 index rose 0.7%.
In cryptocurrencies, bitcoin fell 2% to $ 46,911, offsetting some of the gains made last week after two major U.S. financial groups announced cryptocurrency projects.