Asian markets rise, led by post-election rally in Japan
Stocks advanced in Asia on Monday, with Tokyo’s benchmark up 2.2% after the ruling Liberal Democrats won a stronger than expected majority in an election Sunday.
Tokyo’s Nikkei 225 index
NIK,
surged more than 650 points, while the Kospi
180721,
in Seoul gained 0.5%. In Sydney, the S&P/ASX 200
XJO,
picked up 0.7%. The Shanghai Composite index
SHCOMP,
edged less than 0.1% higher.
Hong Kong’s Hang Seng
HSI,
dropped 1.1% as investor concerns over financial risks for property developers added to worries over the economic outlook. Benchmark indexes in Singapore
STI,
Taiwan
Y9999,
and Indonesia
JAKIDX,
gained.
Japanese Prime Minister Fumio Kishida’s coalition kept a comfortable majority in Sunday’s parliamentary election despite losing some seats as his weeks-old government grapples with a coronavirus-battered economy and regional security challenges.
“This removes a key political overhang that has been weighing on market sentiments . . . and drives risk-on moves in the Japanese market,” Jun Rong Yeap of IG said in a commentary.
Kishida is expected to draw up a package of government spending and other measures to boost growth. He has backed away from earlier comments suggesting he favors raising the capital gains tax, a move that would largely tax the wealthy. Suggesting that might be one way to address growing inequality in Japan wilted share prices just after he took office.
Shares have since rebounded amid signs Kishida’s administration will likely continue the market-supporting policies of his predecessors Shinzo Abe and Yoshihide Suga.
The regional gains followed further milestones on Wall Street, where the three major indexes set records. Wall Street logged its best month in nearly a year in October, as investors balanced encouraging company earnings growth against concerns over rising inflation and supply chain disruptions.
The S&P 500
SPX,
rose 8.96 points to 4,605.38 — another new high. The Dow
DJIA,
added 89.08 points to 35,819.56, while the Nasdaq
COMP,
gained 50.27 points to 15,498.39.
Outside of earnings, investors were looking ahead to this week’s meeting of the Federal Reserve as the central bank moves closer to trimming bond purchases that have helped keep interest rates low.
Benchmark U.S. crude oil
CLZ21,
fell 40 cents to $83.17 per barrel in electronic trading on the New York Mercantile Exchange. It gave up 24 cents to $83.57 per barrel on Friday.
Brent crude
BRNF22,
the basis for international pricing, lost 31 cents to $83.41 per barrel.
The U.S. dollar
USDJPY,
…
Read More: Asian markets rise, led by post-election rally in Japan