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Nikkei leaps 3.9% as GPIF boosts share allocation

FXStreet (Mumbai) - The Japanese equity markets rose today to end the day with almost 4% gains after the Nikkei newspaper reported over the weekend that the Government Pension Investment Fund (GPIF) shall increase its allocation for shares to 25% from the current allocation of 10%.

The Nikkei ended the day 3.98% higher at 15,111 levels, after having suffered three straight weeks of losses. Moreover, the fund is also planning to reduce the allocation for reducing domestic notes to 40 % level from 60%. The fund can allocate a maximum of 30% for shares since it has the authority to adjust its allocation 6% point higher or lower than the target.

The rise in the Nikkei was accompanied by the strength in the USD/JPY pair, which rose above 107.00 levels today.

Nikkei Technical levels

The index has finished the day above the resistance level of 15,089, opening doors for 15,220 levels. However, prices may fall back to 14,600 levels if the index fails to sustain above 15,089 tomorrow.

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