Nikkei posts longest streak of gains since early 1988

TOKYO: Tokyo’s benchmark index rose yesterday to post its longest string of gains in nearly 30 years, as corporate earnings get into full swing and voters in the world’s No. 3 economy head to the polls this weekend.

The Nikkei 225 gained 0.40 per cent, or 85.47 points, to close at 21,448.52, its 13th winning session and the longest positive run since early 1988, during the country’s bubble economy years.

The broader Topix index tacked on 0.31 per cent , or 5.40 points, to finish at 1,730.04.

Investors have been generally upbeat on the state of the global economy with fresh record closes on Wall Street also supplying a positive lead.

Markets have been encouraged by polls showing Japanese Prime Minister Shinzo Abe is heading for a clear victory in Sunday’s election, meaning a continuation of his “Abenomics” growth strategy.

“The call for a snap election was a catalyst for rallies in the Japanese stocks,” said Hiroaki Kiwata, a strategist at Toyo Securities.

“Usually share prices decline after the election, but this time corporate earnings reports are coming soon after, so the market focus will smoothly shift to company results,” said Kiwata.

The Nikkei was below 10,000 when Abe came to power in late 2012.

But it still remains far below a record close of almost 39,000 in the last days of 1989 before a stock and property market bubble collapsed.

“I really think people have under-estimated the state of things in Japan,” said Andrew Clarke, director of trading at Mirabaud Asia in Hong Kong. AFP