Japan’s Topix index, a broad gauge of listed companies, has closed up 0.6 per cent at 1307 points, its highest level since July 2008.
Japanese shares had been underperforming so far this year, reflecting fading enthusiasm about prime minister Shinzo Abe’s economic recovery campaign.
The turnround is not exactly Mr Abe’s doing. Instead, it has come after traders sold the yen to buy the dollar, which has been roaring ahead recently, fuelled by speculation the US central bank will raise interest rates sooner rather than later.
The yen is currently trading at 106.5 per dollar, also a five-year low.
Traders buy up Japanese shares when the yen falls, as a softer domestic currency flatters profits by raising the reported level, in yen, of manufacturers’ overseas earnings.
