Asian Markets Update: Nikkei Tops 20,000 Despite Tax Plan Concerns

TOKYO -- Tuesday's uproar in the banking sector over a possible new corporate tax plan dwindled to a mere mumble today, as most players were more concerned with seeing the benchmark Nikkei 225 index settle above key resistance of 20,000.

Players got their wish. The Nikkei rose 138.89 to 20,007.77, the first time the index has closed above 20,000 in almost two-and-a-half years. The Topix index, comprising shares listed on the Tokyo Stock Exchange's first section, climbed 10.28 to 1747.83. The Jasdaq small-cap index jumped 2.45, or 2.3%, to 111.27, while the Nikkei over-the-counter shares rose 37.87, or 1.6%, to 2417.27.

"With the Nikkei 225 cash index nestled above 20,000 now, I'm expecting the market to head higher on more of a technical basis, rather than on news," said one futures desk head at a major U.S. brokerage firm. The player said Nikkei 225 futures, which settled at 19,990, can now shoot for an upside target of 20,400. ...