Japan’s Nikkei closes at 21-year high on positive US cues

New Delhi: Tokyo's benchmark stock index closed at a more than two-decade high on Wednesday, as the Japanese market rides a global equities rally with its US counterparts hitting fresh records.

The Nikkei 225 rose 0.28 percent, or 57.76 points, to end at 20,881.27, its best finish since December 1996.

Sentiment was boosted after the International Monetary Fund upgraded its global economic growth forecast for 2017 and 2018, driven by a pickup in trade, investment, and consumer confidence.

One of the biggest drivers of global equities is the United States and some of the macro data coming out from there has been quite positive.

The three major Wall Street indices set record highs again, with Dow up 0.3 percent, the S&P 500 adding 0.2 percent and the Nasdaq inching 0.1 percent higher.

In currency markets, the dollar held around a two-week trough as U.S. President Donald Trump`s escalating war of words with Senator Bob Corker raised concerns about the administration`s ability to pass promised reforms.

The dollar index steadied at 93.314 against a basket of currencies, around the lowest level since Sept.29.

The greenback was also under pressure amid ongoing uncertainty over the next Federal Reserve Chairman, with the predictions market site, PredictIt, favouring Fed governor Jerome Powell as the most likely candidate.

While Powell is regarded as more hawkish than incumbent Janet Yellen, whose term expires in February, analysts say he might be less aggressive in winding back stimulus than Kevin Warsh, another possible candidate for the role.

Investors will keep an eye on the minutes of the Fed`s September meeting due later in the day, which might help bolster views of a December rate hike.