By Jonathan Davies

Japan's Nikkei stock market closed at a seven-year high yesterday (Monday) as rumours of a 10% sales tax hike being postponed intensified.

The Nikkei 225 Index closed 2% higher at 17,124.11, the highest it's been since October 2007.

Markets had been subdued with the 10% increase in sales tax looming. But news reports suggest that Japan's Prime Minister Shinzo Abe may delay the increase.

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