The Nikkei share average scaled a 34-year peak on Friday, recording its best week since March 2022, underpinned by receding bets on an early exit from the Bank of japan (BOJ) stimulus and sheer momentum as foreign investors returned.
The Nikkei closed Friday's trading 1.06% higher at 35,422.95, after rising as much as 2.25% to 35,839.65 for the first time since February 1990. The index rallied nearly 7% and marked a multidecade high every trading day this week.
Technical indicators were flashing warning signs, however, with one such measure — the relative strength index, or RSI — climbing to 74.55 for the Nikkei. Readings above 70 indicate an overheated market.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.