Topix hits six-year high as Japan erases 2014 losses

Japan's benchmark Topix index has closed at its highest level since 2008 as a stronger US dollar sends the yen on a downwards path once again.

The Topix added 0.6% overnight to close at 1,306.79 this morning, the highest close since July 2008. The index has now risen 0.4% this year following a runaway 2013 and, more significantly, bounced 15% from its April lows. That rise has been fuelled by the falling purchasing power of the yen, which in turn boosts Japan’s export sectors. The yen fell 0.3% overnight to 106.47 against the dollar, nearing its lowest level since September 2008, as the outlook for the US economy continues to achieve. A renewed rally for Japanese stocks has come even as Q2 economic data disappointed, with...