Top Shot – Officials watch as people cast their votes during the general election at a polling station set up at a local school in Tokyo on October 27, 2024. Japan voted on October 27th in its closest election in years, and new Prime Minister Shigeru Ishiba and his successor were sworn in. The giant Liberal Democratic Party could face its worst outcome since 2009. (Photo: Richard A. Brooks/AFP) (Photo: RICHARD A. BROOKS/AFP via Getty Images)
Richard A. Brooks | AFP | Getty Images
Japan’s benchmark Nikkei Stock Average and its TOPIX index rose on Monday, supported by a weaker yen amid political uncertainty after the ruling Liberal Democratic Party lost its parliamentary majority.
The Nikkei Stock Average rose 1.82% to close at $38,605.53, leading the gains in Asian markets, while the TOPIX rose 1.51% to $2,657.78. The yen fell 0.64% to 153.28 yen on Monday.
In this election, the Liberal Democratic Party and its coalition partner Komeito won 215 out of 465 seats, and the opposition Constitutional Democratic Party and Democratic Party of the People made significant advances.
Some analysts say this political uncertainty could deter the Bank of Japan from raising interest rates.
Bank of America’s chief Japan economist Izumi Desvaliers said political uncertainty and instability could delay rate hikes, but the Bank of Japan cannot ignore the persistent weakening of the yen. .
“I don’t necessarily think that means the Bank of Japan will hold off on raising interest rates for the foreseeable future.Of course, we need to keep an eye on market trends, but depending on the situation, it could lead to a rate hike in January or December. “There’s a possibility that it’s going to take off. ‘Where is the yen going?'” she said.
South Korea’s Kospi rose 1.13% to 2,612.43, while the small-cap Kosdaq rose 1.8% to end at 740.48, rebounding from a six-week low.
Australia’s S&P/ASX 200 rose 0.12% to close at 8,221.5.
Hong Kong’s Hang Seng index reversed declines and was up 0.18% at the close, while mainland China’s CSI300 index rose 0.2% to close at 3,964.16 after China reported its worst industrial earnings since the pandemic. . China’s industrial profits in September fell 27.1% from the same month last year.
