Here’s Associated Press on Japan’s stock market hitting a 30-year peak today:
In Tokyo, the Nikkei 225 jumped 2.7% to 27,568.15, the first time it has traded above 27,000 since August 1990, according to FactSet. The market hit its all-time peak close of 38,915.87 on Dec. 29, 1989.
The benchmark was buoyed by strong gains in heavyweights like Mitsubishi Heavy Industries, which surged 4.6%, apparel maker Fast Retailing, also up 4.6%, and technology and energy company SoftBank, which gained 4.2%.
Other Asian shares were also mostly higher.
Hong Kong’s Hang Seng index rose 0.9% to 26,557.18. In South Korea, the Kospi edged 0.1% higher to 2,814.16. Australia’s S&P/ASX 200 climbed 0.5% to 6,700.30.
The Shanghai Composite index fell 0.3% to 3,386.57. Shares fell in Taiwan and Indonesia but rose in Malaysia and Singapore.
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Relief that Donald Trump has signed a $900 billion economic aid package, and that a disorderly no-deal Brexit has been avoided, are driving stock markets towards fresh record peaks today.
Wall Street hit a record high last night, as the president finally put his signature to a bill guaranteeing $900bn of Covid relief, and a further $1.4tn of government spending to avert a shutdown.
And that relief has fed through to Asia-Pacific markets overnight, where Japan’s Nikkei has closed at a new 30-year high.
The new stimulus package, hammered out after months of wrangling, includes funds to help small businesses, health providers and schools, as well as individuals facing unemployment, eviction and food insecurity.
The bill is creating “positive optimism among traders who feel pleased that the US economy has plenty of support from the fiscal and monetary policy side,” says Naeem Aslam of Avatrade.
The House of Representatives on Monday has also passed a measure to increase stimulus checks for Americans under a certain income level to $2,000 – a move demanded by Trump – although it’s not clear if the Republican-controlled Senate will approve the move.
Yesterday, Germany’s DAX hit a new lifetime high, and Britain’s FTSE 100 is also heading for a strong start as City traders return to their desks after the Christmas break.
Confirmation that the UK and EU had reached a free trade deal came just after the London stock markets closed on Christmas Eve, so domestically-focused companies could get a lift today.
Reuters reports that:
“With the Brexit … and the U.S. stimulus deal now in the rear-view mirror, there is a sense of relief that we have avoided the respective worst-case scenarios,” said Stephen Innes, chief global market strategist at Axi, a broker.
Britain clinched a narrow Brexit trade deal with the EU on Thursday, just seven days before it exits one of the world’s biggest trading blocs.