Nikkei closes at record high supported by Wall Street gains and a weaker yen

Japan’s Nikkei closed at an all-time high on Friday, boosted by record gains on Wall Street on Thursday and a rally in automaker stocks on the back of a falling yen.

According to Reuters, the Nikkei rose 0.18% to close at 40,888.43%, after reaching 41,087.75 points earlier in the session, exceeding the highest level ever recorded during trading.

The index, which exceeded 41,000 points for the first time, rose 5.68% during the week and has risen 22% since the beginning of this year. The broader Topix index rose 0.61% to 2,813.22 points.

“The market expected the yen to rise against the dollar in the current quarter, but that did not happen, which is a positive thing for Japanese companies,” said Shuji Hosui, senior analyst at Daiwa Securities.

He added, “The yen is still weaker, as Japanese (government bond) yields are not expected to rise much.” The Bank of Japan said it will maintain its monetary easing policy so that the gap in yields between the United States and Japan does not narrow.”

Bank of Japan Governor Kazuo Ueda on Thursday pledged to continue supporting the economy through ultra-easy monetary policy.

A lower yen helps exporters because it increases the volume of revenues from abroad in yen.