Japanese stocks rose on Monday morning as investors became more confident that the US economy is more likely to avoid an impending recession. The Nikkei 225 was up 0.7%, reaching a one-month high, while the Topix advanced 1.02% to 2,368.29, its highest level in the past 32 years. This is the sixth straight daily rise for both indices.
Nomura Securities strategist Maki Sawada has forecast the Nikkei to remain in a range of 32,000-33,000 this week, however, explaining that key economic indicators this week may be directed at curbing aggressive buying of Japanese stocks. “It’s an environment conducive to fostering concerns the market is overbought, considering how far it’s come over a short amount of time,” Sawada observed.
Transportation stocks enjoyed a rampant rise on Monday, with Mazda jumping 4.14%, Nissan gaining 3.64%, and Toyota rising 3.1%. Overall, transport equipment makers made the TSE’s top three, gaining 2.78% on a whole.