The market reopened this week with the Hang Seng Index 1.6% higher than it was before the holiday. The Nikkei Stock Average also climbed 1.4% in Tokyo, reaching one of its highest levels in over five years.
The increases may be the result of a record finish for the Dow industrials and the S&P 500 as U.S. economic data looks up.
“The share-market rally across the world is putting the ‘don’t chase a rally’ adage to the test, as bourses continue to record territory,” said Matthew Sherwood of Perpetual. “Quality is essential in this market, as prices are distorted, and the foundations aren’t strong.”
Akira Amari, Economy Minister of Japan, has stated that further weakness in the yen may be harmful. As a result, the local currency is rising.
“Japan’s turbo-charged stimulus measures have helped contribute to a solid gross domestic product growth outcome in the first quarter and to the rally in risk assets, but much needs to be done in terms of reforms to help sustain growth,” explained Credit Agricole’s Mitul Kotecha.