Nikkei record, oil price, OPEC+

Japan’s Nikkei 225  hit yet another record high to top the 40,000 level Monday. The index was last up 0.8%.

The benchmark index has been on a record rally, which has seen it hitting all-time highs for the first time in 34 years.

Both the Nikkei and the broader Topix have been top performers among major stock markets in the Asia-Pacific. The Nikkei is up over 20% so far this year, while the Topix is up nearly 15%.

Strong earnings and investor-friendly measures by Japan’s government have fueled a blistering rally in equities this year.

The broad-based Topix inched 0.1% higher Monday after crossing the 2,700 mark and hitting a record high last Friday.

— Shreyashi Sanyal

South Korea’s industrial output fell for the second straight month in January, while retail sales grew during the month according to data.

Industrial output growth in January fell 1.3%, from a revised 0.5% in the prior month. A Reuters poll forecast was expecting a 1% rise.

South Korea’s retail sales grew 0.8% in January, after falling 0.8% in the previous month.

— Shreyashi Sanyal

The technology sector rose around 2.4% this week as the S&P 500’s top-performing sector. NetApp surged 20.2% to lead the sector’s gains.

Consumer discretionary was the following best sector, rising 2.1%.

Meanwhile, health care, which fell 1.1%, was the biggest underperformer week to date.

— Hakyung Kim

With all three major stock indexes notching their fourth straight month of gains, it’s fair to ask if the equity rally has run too hot, too fast.

But all things considered, the bubble hasn’t grown to enormous proportions, Citi said.

“The current equity bubble is not (yet) overly large in terms of price appreciation, duration, valuation, or sentiment. Some are disputing whether it is a bubble in the first place given the expectations of strong earnings growth,” said Citi’s Dirk Willer. “We therefore think the market likely has further room to run.”

He added that he remains bullish on U.S. equities, particularly technology stocks.

— Lisa Kailai Han

U.S. crude oil futures topped $80 a barrel for the first time in nearly four months, as signs point to a tightening market ahead of an OPEC+ decision on production cuts.

The West Texas Intermediate contract for April gained more than 2%, or $1.78, to $80.04 a barrel, while May Brent futures added 2.15%, or $1.76, to $83.67 a barrel.

U.S. crude and the global benchmark booked a second consecutive monthly gain in February as near-month contracts traded at a premium to later months, typically a sign of a tightening oil market.

OPEC+ is considering rolling over its production cuts through the second quarter and possibly the end of the year, three sources in the organization told Reuters this week. The cartel and its allies are expected to make a decision on the reductions in the first week of March, sources told Reuters.

— Spencer Kimball