Japan's stock market has continued its rally as investors are optimistic about the mid-term prospects for the global economy. The Kobe Steel data scandal no longer seems to worry traders that much.
Asian markets rose again on Monday, building on last week's gains as investors tracked another positive lead from Wall Street.
Equities around the world continue to rally on optimism about the mid-term prospects for the global economy and the current corporate earnings season.
Tokyo stocks extended Friday's 21-year high following strong profits by a number of Japanese companies, largely shrugging off the Kobe Steel falsified data scandal and a slightly higher yen.
The Nikkei 225 had already hit the highest level since November 1996 on Friday, but gained another 0.6 percent by the break on Monday to close at 21,255.56 points.
Central bank spreading confidence
The broader Topix index had risen by 0.9 percent to 1724 points by the break, with traders saying the relatively weak national currency was providing a boost to export-oriented firms in Japan.
In addition, stocks were supported by the assumption that the ruling party would show a strong performance in parliamentary elections later this month.
For good measure, Bank of Japan Governor Haruhiko Kuroda signaled Sunday that the central bank's loose monetary policy would continue in a bid to fuel inflation.
"The Bank of Japan will consistently pursue aggressive monetary easing with a view to achieving the price stability target at the earliest possible time," Kuroda said during a visit to Washington.
hg/jd (AFP, Reuters)