The Nikkei 225 Index Closes 1.86% Higher
The Nikkei 225 Index jumped 1.82% to close at 38,605 while the broad-based Topix Index gained 1.51% to 2,658 on Monday, recovering most of the losses from last week as the yen weakened further in the aftermath of Japan’s weekend election.
The Liberal Democratic Party and its coalition partner Komeito lost their majority in the lower house, raising political and economic uncertainties and further complicating the Bank of Japan’s normalization plans. Meanwhile, the BOJ is set to decide on monetary policy on Thursday, although it is expected to keep policy unchanged.
The yen declined to an almost three-month low on the dollar, boosting the profit outlook for Japan’s export-heavy industries. Technology stocks led the rebound, with strong gains from Disco (5.2%), Lasertec (4.9%), Advantest (4.6%), Tokyo Electron (2.8%) and SoftBank Group (3%). Other index heavyweights also advanced, including Mitsubishi UFJ (0.9%), Toyota Motor (4.1%) and Fast Retailing (1.2%).
Source : Trading Economics
