Japanese equities kicked off the new year sharply higher on Wednesday, leading the region’s gains amid a robust outlook for the U. S. economy, coupled with expectations of continued yen weakness.
“Today was the first day of trade in Japan and market participants are reacting to the good news over the global economy,” said analyst Masashi Murata, who covers regional and emerging markets for Brown Brothers Harriman.
The outlook for the global economy is strong with inflation picking up in the U. S. and Europe, he said.
Overnight, the U. S. dollar gained to a 14-year high, boosted by data that underscored the strength in the nation’s economy. The Institute for Supply Management’s manufacturing index, released Tuesday, rose to its highest level in two years. The news pushed the WSJ Dollar Index up 0.3% to its highest level since mid-2002.
In Asian trade Wednesday, the index narrowed its gains and was last up 0.
