Japan Market surges as election point to further Abenomics

The Japan share market inclined on Monday, 11 July 2016, after Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending. Abe's Liberal Democratic Party scored a big win in Upper House elections held over the weekend. The election was said to be a referendum on Abe's economic stimulus plan dubbed "Abenomics," which uses the "three arrows" of fiscal stimulus, monetary easing and structural reforms. Many observers are emphasizing that the weekend election in Japan has given a super-majority to those parties that want to change the constitution, relaxing the restraints on the military. All 33 TSE sectors advanced, with Iron & Steel, Securities & Commodities Futures, Glass & Ceramics Products, Insurance, and Nonferrous Metals issues being major gainer. The 225-issue Nikkei Stock Average spurted 601.84 points, or 3.98%, to 15708.82. The broader Topix index of all First Section issues on the Tokyo Stock Exchange surged 45.91 points, or 3.79%, to 1255.79. Rising stocks outnumbered declining ones on the Tokyo Stock Exchange by 1968 to 62 and 19 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was down 3.88% to 29.50.

Powered by Capital Market - Live News