The Nikkei 225index rallied to the highest level since September 1990 as investors waited for more information about Joe Biden’s stimulus package. The index has jumped by more than 75% from its lowest level last year. Other Asian indices are mixed, with the Hang Seng index rising by 0.45% while the Shanghai composite fell by more than 1%.
What’s happening: Japan stocks have been rallying in the past few months because of several reasons. First, the Nikkei 225 rally is part of the overall strong performance by other global indices. In general, all major indices have rallied after bottoming last year.
Second, many investors have flocked to Japan, where they believe that stocks are relatively cheap. Just last year, Warren Buffett spent billions of dollars buying the 5 biggest sogo shoshas. Other investors have followed him.
Third, in response to the coronavirus, the Japanese government has launched a large stimulus package that has also helped support the stocks.