The Nikkei stock index on Monday climbed to a fresh six-year high to close out the last trading day of 2013.
The index soared 57 percent for the year to score its biggest annual gain since 1972, powered by aggressive fiscal and radical monetary stimulus programs that boosted exporters by weakening the yen.
At the close of trading Monday the 225-issue Nikkei stock average gained 112.37 points, or 0.69 percent, from Friday to end at 16,291.31, its highest close since Nov. 2, 2007.
It was the index’s ninth consecutive day of gains and its longest rally since July 2009.
The broader Topix index of all first section issues on the Tokyo Stock Exchange rose 12.22 points, or 0.95 percent, to end at 1,302.29, closing above 1,300 for the first time since July 31, 2008.
Prime Minister Shinzo Abe said at the yearend ceremony at the TSE that his government is trying to overcome deflation with his “Abenomics” program this year and that share prices have surged well in excess of economists’ forecasts.
“Buy my Abenomics next year as well,” he said, pledging to make further efforts in 2014 to achieve a positive growth cycle.
The market got off to a solid start and remained firm throughout most of the day on gains in a broad range of shares, with major advancers including the oil and coal, mining and real estate sectors.
Electronics and other export-linked companies, including Sony, enjoyed solid gains after the dollar rose to its highest level in five years and two months in the lower ¥105 range, boosting optimism for the outlook on earnings.
A weaker yen increases exporters’ competitiveness in overseas markets and boosts their dollar earnings when repatriated.
“With the yen’s depreciation accelerating and U.S. shares staying firm, share prices were rising on expectations for a further rise next year,” said Masashi Akutsu, equity strategist at SMBC Nikko Securities Inc.
The 30-issue Dow Jones industrial average repeatedly hit all-time highs before taking a slight breather Friday.