Today, the Tokyo Stock Exchange closed with moderate growth of all its indices.
So, Nikkei, essential Japan’s index monitoring stock rates of 225 leading companies, added 24% closing at 15,984.29 points. TOPIX, the second most important and broader index tracking all domestic companies of the exchange's First Section, edged up 0.18% and closed at 1,3013.72 points.
Analysts note that Japan’s stock market entirely depends on the yen’s exchange rate. Thus, the current rally on the stock market is directly linked to the yen’s depreciation. In particular, at a Friday’s session, the Japanese currency plummeted even lower than a six-year minimum against the U.S. dollar.
Analysts believe that the yen’s depreciation is mainly driven by the quantitative easing program implemented by the Bank of Japan. So, the greenback has gained nearly 40% versus the yen for the recent two years. Japan’s stock market jumped almost twice for the same period.
After Nikkei hits an 8-month high, shares are still keeping on surging, Nomura Holdings strategist commented on the situation on the Japanese stock market. However, there are fears of the market overheating. The expert thinks speculators are focused on securing profits.