TOKYO – Japan’s Nikkei 225 Stock rallied to the highest level since May 22 and rose 2.12 percent as the Japanese Yen weakened and boosted shares in the Asian Markets. The nomination of the new Fed Chairman Chief Janet Yellen, also brought in much optimism to the market and raised speculation that the Federal Reserve will maintain U.S. stimulus measures under her new leadership.
Her statement yesterday gave much encouragement to the market – “A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases.” “I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”
Yellen showed signs of determination and commitment to her strategy to improve domestic growth in the U.S. with bias to the continuation of QE and low lending rates in the short to medium term to achieve its goal to lower the nation’s 7.3 percent unemployment rate.
Chart: WorldWideMarkets Alpha Trader