Nikkei regains some of last week's losses after strong US jobs data

Japan's Nikkei 225 index has closed up 4.94 per cent following strong US jobs data on Friday. Nonfarm payrolls, a seasonally adjusted measure of new job creation, exceeded the expectations of economists. Unemployment stayed relatively high however, dulling fears of a Fed decision to began tapering off QE.

The announcement that Japan's huge public pension fund, the GPIF, is shifting its weightings from bonds to stocks is also thought to contribute to the continuing rally in equities. Last week the Nikkei saw its biggest weekly loss since Fukushima in 2011.

Ayako Sera, senior market economist at Sumitomo Trust Bank in Tokyo:

[The nonfarm payrolls number] didn't suggest an imminent tapering, but it still pointed to the direction of the Fed scaling back its quantitative easing at some point, leaving an element of uncertainty.