This week, the Nikkei and the broad-based Topix surpassed previous records to hit fresh all-time closing highs on Thursday.
Earnings are the single driver to the current market rally, Jesper Koll, expert director at Tokyo-based financial services company Monex Group, told CNBC.
watch nowJapan's largest union, commonly referred to as Rengo, announced that Japanese companies have delivered the largest wage hikes in 33 this year.
Koll told CNBC this week: "I stand by my forecast — the Nikkei 225 is poised to climb to 55,000 before the end of next year."
A note by Nomura, published Thursday, said the gains on the Nikkei and Topix do not look appear sustainable.
Persons:
Richard A, Brooks, Jesper Koll, Koll, —, Rengo, Nomura
Organizations:
Tokyo Stock Exchange, Afp, Getty, Nikkei, Monex, CNBC, Japan's
Locations:
Nihonbashi, Tokyo, Japan