Japan’s blue-chip equity gauge is set to complete a nine-week advance that would be its longest winning streak in more than five years.
(Bloomberg) — Japan’s blue-chip equity gauge is set to complete a nine-week advance that would be its longest winning streak in more than five years.
The Nikkei 225 Stock Average has climbed almost 2% since June 2, extending its advance since April 7 to 17%, as the S&P 500’s entry into a bull run on Thursday added to the Japanese market’s upward momentum. Foreign investors bought a total of 2.4 trillion yen ($17.2 billion) of Japanese stocks for the month of May, the most since April 2013, according to exchange data.
Japan’s equities are likely to remain stable given that the nation’s central bank is unlikely to drastically change policy soon. Only 3 out of 47 polled economists expect a tightening move at a two-day policy meeting ending June 16, down from 18 who flagged action this month in the previous survey in April.
“This accommodative monetary policy stance sets the BOJ apart from authorities in the US and Europe,” wrote Mitsubishi UFJ Morgan Stanley strategists including Sho Nakazawa in a note. “We think this difference will underline the stability of the climate for investment in Japanese equities.”
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