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The Tokyo Stock Exchange closed on the rise, following the movement of US stock markets which reached new highs thanks to positive American economic indicators, such as the increase in consumer confidence in March. At the end of the session, the Nikkei index recorded a gain of 0.5% to 40,369.44 points, thus closing a very positive quarter (+21% since the beginning of the year). The broader Topix index also performed well, ending the session up 0.65% at 2,768.62 points.
The gains came after the S&P 500 index hit its 22nd record this year on data showing the U.S. economy remains healthy. A $4 trillion rise in the value of US stocks in just three months has shocked doomsayers, while at the same time leaving doubts about 2024 goals.
Traders are on alert for probable fluctuations in the Japanese currency: although the yen has strengthened slightly against the dollar, it remains close to levels not seen for decades.
Some recent moves to weaken the yen have been speculative and do not reflect fundamentals, Japanese Finance Minister Shunichi Suzuki said, adding that there is no specific line of defense regarding the exchange rate level.
Latest data showed that consumer price growth in Tokyo softened but remained well above the central bank’s inflation target. That could convince the Bank of Japan to consider further rate hikes after raising earlier this month for the first time since 2007.
