Wednesday, December 12 07:55:13
Japan's Nikkei average climbed to its highest closing level in nearly eight months today, led by exporters as persistent speculation that a likely new government would pressure the central bank to take bolder policy weighed on the yen.
The Nikkei advanced 0.6 percent to 9,581.46, taking the index back to 'overbought' territory, with the 14-day relative strength index at 70.9. Seventy or above is considered overbought and often indicates a possible near-term pull back.
The index has rallied 10.6 percent over the past month, driven by a weaker yen after Shinzo Abe, the leader of the main opposition party which is expected to win this Sunday's general election, called for the Bank of Japan to adopt aggressive monetary easing, including embarking on "unlimited easing".
The central bank is also expected to expand its asset-buying and lending programme next week.
Exporters have been the main beneficiary of the softer yen, which was quoted at 82.655 yen to the dollar, not too far from a 7-1/2-month low of 82.84 yen touched on Nov. 22. ( C) Reuters