Japan's Nikkei closes above 30,000 on earnings rebound, economy growth hopes

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Japanese shares surged on Monday to close at over 30-year high on rising expectations for a rebound in corporate earnings and economic growth.

Men holding umbrellas walk near an electric board showing Nikkei index a brokerage in Tokyo, Japan February 15, 2021. REUTERS/Kim Kyung-Hoon

Japan is expected to start coronavirus vaccinations this week, which is also supporting stock prices. However, Japanese stocks have rallied 8% so far this month, and some analysts warn that the market may be overheating. “Earnings growth has already been priced in for at least a year from now. There is reluctance to chase the upside from here, but stocks won’t fall too much.”

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