Japanese index rises 3.3%, leading gains across Asian markets
Asian equities continued to strengthen Thursday, with Japanese stocks surging on their first trading day of 2018 after U.S. indexes rose to fresh records overnight.
The Nikkei Stock Average closed up 3.3%, hitting a fresh 26-year high and logging its biggest daily gain since Nov. 10, 2016.
Retail investors drove Thursday's gains, said Takahiro Sekido, a Japan strategist with Bank of Tokyo-Mitsubishi UFJ, boosting their stockholdings with the Japanese economy on strong footing. In addition, the country's producers and exports are expected to receive support from steady Chinese economic growth, he said.
Foreign investors should finally turn their attention to Japanese stocks, said Kyoya Okazawa, who helps oversee institutional-client operations at BNP Paribas, pointing to the stable global picture and the passing of the U.S. tax reform. A strong global economy is now "enough reason" to invest in Japan, he said, putting the Nikkei's next resistance level at 25,000.
Gains were more muted elsewhere in Asia. South Korea was an exception, with the Kospi reversing an early advance to end 0.8% lower as index heavyweight Samsung Electronics (005930.SE) fell 1.1%.
The major stock indexes in New Zealand, the Philippines and Thailand set fresh record highs Thursday, while benchmarks in Malaysia and Singapore reached their best levels since mid-2015.
Hong Kong and China outperformed most markets with gains of, 0.6% and 0.5%, respectively, helped by strong economic data. The Hang Seng Index touched a new 10-year high Thursday and notched its first eight-day winning streak since July.
Australia's S&P/ASX 200 lagged behind regional gains, closing just 0.1% higher despite renewed strength in commodities stocks. Oil companies there rallied after crude rose 2% to set three-year highs on Wednesday and extended gains by 0.5% in Asia on Thursday.
(END) Dow Jones Newswires
January 04, 2018 06:07 ET (11:07 GMT)