Hot money hoists Nikkei to almost 34year high
Analysts see index overhauling 1989 peak this year
Sharp gains defy caution in global equities

SINGAPORE, Jan 12 Reuters Japanese stocks have made a blazing start to 2024, surging to threedecade highs as a weaker yen and expectations of interest rates staying low have reignited the strongest rally for years.

A 6 gain in the Nikkei over the past two weeks is the best start to the year in a generation, according to LSEG data, and comes on the heels of a 28 jump last year the biggest annual gain in 10 years.

As chart levels break, dealers say hedge funds are rushing to chase the momentum and that the index39;s 1989 peak of 38,957 is in sight as more cash from home and abroad flows in.

Foreigners were net sellers in the first week of January, if derivative trade is taken into account, but were buyers of cash equities according to exchange data and sales desks say this week was even busier and that sellers have been scarce.

Last year drew 6.3 trillion yen 43.5 billion worth of net equity buying from foreigners, the largest in data stretching back a decade.

Since the start of the year we see nine times more volume than December, said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore, with buying heavy in the technology sector.

This flow is coming from longshort equity funds … global investors who were hesitant to buy Japan in last quarter of 2023 now have more conviction to invest, he…