Nikkei 225 rally drives Asia higher, stimulus on the cards?

The extension of strong gains on the Japanese bourses on the back of the yen’s relative weakness amid increased stimulus expectations, appears to keep the risk-n moods intact, sending rest of Asia higher.

Analyst at Westpac noted, "Despite the significant uncertainty unleashed by Brexit, risk appetite has been on a steadily firming trend. It appears that the combination of reassuringly decent data and pro-growth monetary/fiscal signalling from various policymakers has been the key to steadier risk appetite."

As confirmed by Japan’s PM Abe yesterday, the Japanese government is preparing to announce another round of fiscal easing in the upcoming days.

Nikkei jumps 3% yet again

The Japanese benchmark index, the Nikkei 225 jumps nearly 3% and regains 16k to now trade  around 16,160, boosted by stronger USD/JPY, up +0.16% on the day. The Australian markets also follow suit, now trading +0.83% around 5,380 points.

The Chinese equities extend gains, with the benchmark Shanghai Composite index rising 0.40% to trade back above 3k mark; the CSI300 index also gains 0.57%. While Hong Kong markets advance 0.70% to 21,030 points.