TOKYO — Japanese Prime Minister Shinzo Abe’s focus on reviving confidence to spur economic growth means he will drive the Nikkei-225 stock average towards the 22,000 mark next year — a level unseen since 1996 — according to Barclays Bank.

“If the audience is Mum and Dad, the main game is improving the Nikkei’s fortunes,” said Mr Nick Wright, Barclays head of equities and co-head of trading for the Asia-Pacific, yesterday.

“The more confident people feel about the future, the more likely consumers will spend, businesses will invest and entrepreneurs will engage, and the more activity in general will increase. The Nikkei is an obvious and visible sign that things are getting better.”

Mr Abe’s willingness to push for unprecedented monetary easing has helped turn the Nikkei-225 index, first published in 1949, into the world’s best-performing major stock benchmark this year.

The index closed at 15,403 yesterday for a 48 per cent gain in the year to date, set for its biggest annual rise since 1972.

Shares have climbed as the Bank of Japan’s decision to double the monetary base sent the yen tumbling, boosting corporate profits for exporters.

It also held government bond yields at the lowest in the world, enhancing the allure of equities.

Trading volumes have also surged as Japanese individual investors became more active. The average daily trading volume in the Nikkei 225 climbed this year to 2.1 billion shares from 1.3 billion in 2012. Domestic retail investors grew their presence in equity markets to 30 per cent last month from 22 per cent a year earlier, according to Tokyo Stock Exchange data.

“That’s what a lot of this is about: Encouraging people to take the money sitting under the pillow and put it into something more worthwhile,” said Mr Wright. BLOOMBERG