By Ronnie HaruiThe Nikkei Stock Average rose to a fresh 34-year high, underpinned by expectations for the Bank of Japan to maintain its super-loose accommodative monetary policy stance and a weaker yen. The index gained 6.6% for the week, the largest weekly gain since the week ended March 18, 2022, according to FactSet. Factors behind the Nikkei's rally include the reassurance given by the Bank of Japan that it's not rushing to terminate its negative interest-rate policy, which also supports a weaker yen, Nomura analysts said. Progress concerning corporate governance has quickened with the Tokyo Stock Exchange's policy initiative during the past year, and there have been market-friendly changes in management behavior, Lazard said. Morgan Stanley MUFG Securities notes that the Tokyo Stock Exchange plans to release a list of companies that have disclosed capital-efficiency measures or have such measures under consideration next week.

Source: Wall Street Journal January 12, 2024 13:27 UTC