TOKYO: Japan’s Nikkei share average soared more than 3 percent on Monday after U.S. stocks rose and the country’s ruling coalition won a landslide victory in upper house elections, boosting confidence in the market.
The Nikkei jumped 3.6 percent to 15,654.82 points by mid-morning trade, the highest since July 5.
Prime Minister Shinzo Abe’s coalition victory is expected to bolster his grip over the conservative party that he led back to power in 2012 promising to revive the economy with hyper-easy monetary policy, fiscal spending and reforms.
“Abe’s victory boosted confidence in investor sentiment, and winning a two-thirds majority sends foreign investors a message that Abe’s policies will progress,” said Hikaru Sato, a senior technical analyst at Daiwa Securities.
The benchmark S&P 500 stock index brushed against its record closing high on Friday as Wall Street rallied after a much-larger-than-expected jump in jobs growth confirmed the U.S. economy has regained speed after a first-quarter lull.
All of the Topix’s 33 subsectors were in positive territory.
Nintendo Co soared more than 20 percent, extending last week’s gains, on hopes that the popularity of its new Pokemon GO smartphone game will boost its results.
Panasonic Corp jumped 6.6 percent after it said it expects strong demand for its lithium-ion batteries from Tesla Motors Inc to help more than double its annual sales of automobile-related batteries in three years.
On the other hand, Kyushu Electric Power Co fell more than 7 percent after an anti-nuclear advocate won the Kagoshima gubernatorial election over the weekend.
Exporters were in demand, with Toyota Motor Corp rose 3.7 percent, Honda Motor Co gained 3.0 percent and Tokyo Electron Ltd advanced 3.8 percent.
The broader Topix gained 3.5 percent to 1,252.29 and the JPX-Nikkei Index 400 added 3.4 percent to 11,265.46.
Copyright Reuters, 2016
Courtesy : BRecorder