GDP data lifts Nikkei to five-year high

 
Suzie Neuwirth

THE NIKKEI rose to a five and a half-year high today, benefitting from yesterday’s promising GDP growth.

The index gained 0.7 per cent to 15,138.12, the highest closing since December 2007.

The latest figures for the Japanese economy showed 0.9 per cent growth for the first quarter, which analysts saw as an encouraging sign for the aggressive stimulus strategy implemented by Prime Minister Shinzo Abe.

“The Nikkei is outperforming thanks to strong rebound in machine orders and solid home loans growth which, on the back of yesterday’s better GDP report, reinforces the argument that Abe’s intervention is paying off,” commented Mike van Dulken, head of research at Accendo Markets.