Nikkei Nudges Up Higher for Fourth Day

Nikkei of Japan moved up to a 7-month closing maximum on Tuesday, largely supported by Greek deal and an important comment made by the opposition leader in Japan calling for even bigger monetary easing. However, the analysts cautioned that the recent surge in market may lose momentum right after a 9% gain in last two weeks, and the big investors got weaker as investors were taking the profits.

The stocks driven by domestic demands like real estate companies and bank firms still managed to get support, Mitsui Fudosan (8801.T) nudging up 1.8% and Mitsui Financial Group (8316.T) advancing 1.0%. The Nikkei (.N225) finally closed up 0.4% at 9,423.30, which made for its 4^th day of profits in a row and its maximum close seen since April 27^th.

Shinzo Abe, the opposition leader inJapan, who is most likely to come victorious in the December election, said Tuesday that Japan could not get back the fiscal health before overcoming deflation, thus calling for bolder fiscal and monetary stimulus to rejuvenate the economy. His comment comfortably lifted dollar over 82 yen and also helped trimming some preliminary losses among the investors, who benefit from weaker yen. The dollar finally traded at around 82.27 yen.

Fujio Ando, one of the strategists from Chibagin Asset Management said that the comments by Abe helped the overall sentiment, but there might be some more corrections in coming days, though the basic mood should continue to be on the positive side. Traders said that the investors, who were under pressure by the stocks in Japan, continued to pump in more money in the market because yen weakened sharply on hopes of a newer administration that is determined to put more pressure on central bank for further easing.

Sentiments also looked bolstered after the news that finance heads of euro zone and IMF managed to clinch an agreement regarding cutting down debts of Greece in one of the breakthroughs to release the very urgently needed loans for keeping the debt-saddle nation afloat.