The strong sentiment of the US and Japan markets helped push up the index. The rally is very broad based.

The peak of the interest rate cycle may be much higher than expected. Continued inflation in the US indicated a need for a rate hike for few more times until next year.

I think sentiment is turning a bit cautious after seeing the market rallying three days in a row, so there's profit-taking at about 16,800.

I think the market's come to realize that economic growth in the U.S. is not threatened by higher oil and commodity prices. Regional markets also benefited from positive fund flows.

That's quite good for 2005, after the central administration implemented measures to cool down the economy.

If the job data is stronger than expected, people will expect a longer rising trend in interest rate.