Japan's benchmark stock index rose to its highest level in five years on Wednesday, taking its gains this year to just over 35 percent. Time to turn cautious? Perhaps not, say analysts who reckon there are plenty more reasons to push the Nikkei higher.
The Nikkei, the best-performing stock market in the Asia-Pacific region so far this year, pushed decisively above the 14,000 mark to its highest level since June 2008, picking up the baton from European and U.S. markets, which posted strong gains of their own overnight.
The stellar gains in the Nikkei have defied expectations for a pull-back and experts say the trend is unlikely to reverse anytime soon.
"I would still be long equities," said Tai Hui, chief Asia-Pacific strategist at JP Morgan Funds. "The momentum in Japanese and U.S. equity markets is fantastic – don't stand in front of a train."
Aggressive monetary stimulus from major central banks globally has fueled the rally in stocks - the Dow Jones Industrial Average closed above 15,000 for the first time on Tuesday and Germany's benchmark Dax stock index climbed to a record high.
The Nikkei's rally has been driven by expectations for aggressive monetary easing that has pushed the yen down some 15 percent against the dollar since the start of the year.