Japan’s key stock index closes in on 3-decade high

SYDNEY, NSW, Australia – Stocks in Asia kicked off the week in an upward trajectory on Monday, although Hong Kong’s Hang Seng shed more than 400 points.

All eyes are on Japanese markets which have prospered since the announcement of Prime Minister Yoshihide Suga’s pending resignation. The benchmark Nikkei 225 index climbed 4.30 percent last week and extended those gains on Monday, with the benchmark index now approaching a more than three-decade high.

“Global markets are fixated on the timing of tapering of QE by central banks, particularly the Fed,” ANZ Bank analysts said in a note, as per a Reuters Thomson news agency report.

“That’s unsurprising, given the support that the extra liquidity has provided to equities and assets more generally,” they added. “The latest guidance from senior FOMC officials is that tapering is still very much on the agenda this year, but is unlikely to be announced until November.”

The Nikkei 225 added 65.53 points or 0.22 percent Monday to close at 30,447.37.

China’s Shanghai Composite climbed 18.60 points or 0.25 percent to 7,425.70.

The Australian All Ordinaries increased 19.90 points or 0.26 percent to 7,726.10.

In Hong Kong, the Hang Seng, declined 392.10 points or 1.50 percent to 25,813.79.

The U.S. dollar was mostly higher.

“The positive move in the dollar comes in spite of the steady/bearish performance of U.S. yields, which so far appear capped by recent tops around 1.35% when comes to the 10-year benchmark,” FX Street reported.