Japanese Stocks Rise After Ishiba Announces Resignation
Japanese stocks rose after Prime Minister Shigeru Ishiba announced his plans to step down, fueling hopes of new catalysts such as a government spending boost. The Topix index rose 1.1% to 3,138.20—a new record high—with 1,305 stocks advancing, 299 declining, and 72 unchanged. The Nikkei 225 added 1.5% to 43,643.81.
Ishiba's resignation follows weeks of pressure following the poor results of the July election. According to TBS, the Liberal Democratic Party is considering a leadership election on October 4. "The market sees this as a sign of movement after post-election stagnation," said Kazuhiro Sasaki of Phillip Securities Japan, adding that expectations for change—including fiscal expansion—are growing.
Stocks that could potentially benefit from Sanae Takaichi becoming prime minister performed strongly. Takaichi is considered one of the frontrunners and is known for her pro-fiscal expansion and nuclear policies. Defense and nuclear-related names were snapped up; IHI and Mitsubishi Heavy were among the top performers on the Nikkei.
The yen weakened by 0.8% against the dollar following Ishiba's announcement, boosting stocks in general. Exporters such as electronics and machinery contributed significantly to the Topix's rise. Conversely, banking stocks lagged as the market expected the BOJ to delay its next interest rate hike until a new prime minister was appointed. (ayu)
Source: Newsmaker.id
